Cardano (ADA) Retests $0.78 Support After 37% Rally as Technicals Signal Bullish Momentum

Cardano (ADA) has retested the $0.78 breakout zone following a 37% rally in July, maintaining critical support above this level and signaling bullish momentum. The price action has reversed a multi-month downtrend, driven by a surge after Grayscale’s ADA ETF application and subsequent consolidation. Technical indicators, including exponential moving averages (EMAs), now align in a bullish configuration, with ADA trading above its 20-day and 50-day simple moving averages. The relative strength index (RSI) at 60.13 and the MACD line remaining above the signal line further underscore sustained buying pressure [1].

The retest of $0.78 marks a pivotal moment for ADA’s short-term trajectory. Analysts highlight that if support holds, a push toward $1.20 could follow, contingent on overcoming resistance clusters. Key liquidity pockets near $0.855 and the $0.94 resistance level—aligned with the upper Bollinger Band and a psychological price barrier—may dictate the next phase of price movement. A breakout above $0.94 could clear the path to retesting the $1.00 level, with the $1.10–$1.20 range becoming a potential target if momentum remains intact [2].

GemBooster observed that ADA’s retest of the $0.74–$0.78 demand zone, previously a support during earlier consolidations, reinforces the significance of this level. The structure remains bullish across higher timeframes, despite a recent pullback, as weekly and monthly charts continue to reflect an upward trend [3]. Bull Bear Spot noted a historical correlation between ADA’s price and global M2 liquidity trends, suggesting that rising liquidity could support further gains.

The current setup reflects a strategic inflection point for ADA. While short-term volatility is possible, the alignment of technical indicators and key support/resistance levels suggests a higher probability of upward movement. Analysts caution that a breakdown below $0.78 could negate bullish assumptions, but the overall structure remains favorable for long-term buyers [4].

Sources:

[1] [ADA Retests Breakout at $0.78 as Structure Turns Bullish] (https://cryptofrontnews.com/ada-retests-breakout-at-0-78-as-structure-tur/)

[2] [ADA Retests Breakout at $0.78 as Structure Turns Bullish] (https://cryptofrontnews.com/ada-retests-breakout-at-0-78-as-structure-tur/)

[3] [ADA Retests Breakout at $0.78 as Structure Turns Bullish] (https://cryptofrontnews.com/ada-retests-breakout-at-0-78-as-structure-tur/)

[4] [ADA Retests Breakout at $0.78 as Structure Turns Bullish] (https://cryptofrontnews.com/ada-retests-breakout-at-0-78-as-structure-tur/)