Cardano (ADA) Reaches $0.7550 on Coinbase, 14% Recovery from May Low

On May 21, 2025, Cardano (ADA) reached $0.7550 on Coinbase, indicating a recovery from a recent volatile correction. The 4-hour chart showed ADA approaching the 50-period Exponential Moving Average (EMA) at $0.7557, briefly crossing above it before closing just under this key resistance. The price began to climb from the $0.72 zone after a sharp decline earlier in May. On May 8, ADA reached a local high near $0.86 before heavy selling pushed prices down by roughly 14% to a low of $0.715 on May 18. Volume remained moderate at 3.79 million, signaling cautious market participation. ADA must close decisively above the EMA to confirm short-term bullish continuation.

The Relative Strength Index (RSI) on the 4-hour timeframe flipped above 50 on May 21. The indicator now stands at 52.82, recovering from a low near 33 recorded on May 17. This move suggests improving momentum, but does not confirm strong bullish pressure. Between May 9 and May 19, ADA remained under consistent selling. During this phase, RSI hovered in the 35–45 range, indicating weak buying interest. The recent rise above 50 shows the start of possible trend reversal. The 14-period RSI crossed its signal line, further hinting at a shift in momentum. Still, the indicator must sustain levels above 55 to validate a bullish trend continuation.

ADA faces resistance between $0.78 and $0.80, a zone that capped the price between May 14 and May 16. Bulls must push beyond this area to reopen the path to $1. Until then, the token remains trapped in a range between $0.72 and $0.80. If ADA clears the $0.80 level, the next significant target sits at $0.86, which marked the peak on May 9. A breakout above this high could create the momentum needed for a rally toward the $1 psychological level. Downside risks remain if ADA closes below $0.72. In that case, price may revisit $0.68, last seen in early May. The next few sessions will show whether buyers maintain this pace.

According to the analyst's forecast, ADA must break $0.80 to target $1; failure risks a drop to $0.68. The recent price action and technical indicators suggest that ADA is in a critical phase. The bullish momentum indicated by the RSI crossing above 50 is a positive sign, but it remains to be seen whether this momentum can be sustained. The resistance levels at $0.78 and $0.80 will be key in determining the next move for ADA. If these levels are breached, the path to $1 becomes more likely. However, if ADA fails to maintain its current pace and closes below $0.72, it could face a drop to $0.68. The coming sessions will be crucial in determining the short-term direction of ADA.