Cardano (ADA) Price Poised for 10%–20% Move as Key Levels Loom

Coin WorldSaturday, May 17, 2025 11:36 am ET
2min read

Cardano (ADA) has been consolidating under key resistance levels, with recent technical signals indicating a potential significant move. The price action has been narrowing, and volume has been dropping, suggesting that ADA could be approaching a decisive breakout. The direction of this breakout remains uncertain.

The daily Heikin Ashi chart shows ADA trading around $0.757, just above the 20-day and 50-day simple moving averages (SMAs), but below the 100-day SMA ($0.7188) and the 200-day SMA ($0.8025). These levels form a significant compression zone, where prices often coil before a strong move. ADA's price rejection from the $0.88–$0.90 range earlier in May created a local top, and since then, it has retraced to test support levels near $0.73, which aligns with the 50-day SMA. If ADA price closes below $0.73, the next daily support from the Fibonacci retracement tool lies near $0.68, with deeper downside possible to $0.62. However, if ADA can reclaim $0.78 and close above the 200-day SMA at $0.80, bulls may target the psychological resistance at $1.00, marking a 31.9% upside from current levels. This makes $0.80 a crucial trigger zone for bullish momentum.

On the hourly chart, Cardano price is in a tightening

, battling against a cluster of moving averages — 20, 50, 100, and 200 SMAs — all trending downward in a bearish . The short-term moving averages (20 and 50) are below the long-term averages (100 and 200), indicating bearish pressure remains dominant in intraday timeframes. Recent hourly candles show lower highs and lower lows, forming a classic descending triangle pattern between $0.75 support and $0.77 resistance. If this breaks down, ADA could fall quickly to $0.73, matching the support level seen on the daily chart. However, if bulls manage to flip the 100-hour SMA at around $0.768, a short squeeze toward $0.786–$0.79 becomes likely, where heavy resistance from the 200-hour SMA sits.

Volume on both daily and hourly timeframes has been gradually declining, a classic sign of a breakout or breakdown brewing. Volume will be the key to validating any move beyond $0.80 or below $0.73. If bulls enter with strength on a breakout, momentum could take ADA past the $0.90 highs from earlier this month.

If Cardano price maintains support above $0.73 and breaks above $0.80, a rally toward $0.95–$1.00 is in sight. The current RSI and MACD suggest neutrality, meaning the market is awaiting a trigger — likely Bitcoin's next move or macro news. However, if ADA breaks down below the $0.73 support, bears could take control, pushing the price to the next Fibonacci levels at $0.68 and possibly even $0.62. Considering the narrowing range, ADA’s price is likely to make a 10%–20% move in either direction within the next 5–7 trading sessions. Traders should watch the $0.73–$0.80 band very closely.

Cardano price is in a tight squeeze between strong support and firm resistance. While short-term charts favor bears, the daily chart still leaves room for a bullish comeback. A decisive move is imminent — and whichever side breaks first will likely control ADA’s trajectory for the rest of May. Let’s keep an eye on the $0.80 resistance and $0.73 support. ADA is coiled, and it's only a matter of time before it strikes.

Comments



Add a public comment...
No comments

No comments yet

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.