ADA's Rollercoaster Ride: Can It Surmount $1.20 Resistance?
1min read Cardano (ADA), the cryptocurrency powering the Cardano blockchain, has experienced a tumultuous journey in recent months, with significant price fluctuations. After reaching a peak above $1.20, ADA underwent a substantial correction, dropping below $0.60 before staging a dramatic price rally. Despite the recent surge, the price is currently facing strong resistance, leaving traders wondering about the future trajectory of ADA.
In this analysis, we will delve into ADA's key support and resistance levels, examine the current trend indicators, and explore the possibility of a further price crash or a rebound. Cardano saw an explosive move upward after touching its $0.60 support level, which acted as a psychological bottom for many traders. The sharp increase in price was likely fueled by a short squeeze, where traders betting on further downside were forced to buy back their positions, accelerating the rally.
However, despite this bullish impulse, ADA quickly hit resistance near $1.20, a level that previously acted as a key rejection zone. The price has since dropped to $0.82, showing signs of increased selling pressure. ADA's bounce from $0.60 suggests that this area is acting as a strong demand zone. Historically, when ADA has tested this region, buyers have stepped in to push the price higher. If $0.60 holds, ADA could consolidate before making another attempt at higher resistance levels.
On the flip side, if ADA fails to hold above $0.80, another retest of the $0.60-$0.65 zone is possible. If this level breaks, the next major support would be near $0.40, which could send bearish signals across the market. The Relative Strength Index (RSI) is currently at 52, indicating that ADA is in a neutral zone. However, just a few days ago, the RSI was oversold, meaning that the recent price recovery was likely a result of buyers stepping in at lower levels.
If the RSI moves above 60, it could signal continued bullish momentum, while a drop below 40 would indicate renewed weakness. The Heikin Ashi candles also show some indecision in price movement. While recent candles have turned green, suggesting bullish attempts, the rejection at $1.20 means that bulls are 