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

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 channel, battling against a cluster of moving averages — 20, 50, 100, and 200 SMAs — all trending downward in a bearish ribbon. 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 structure 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.