Cardano Struggles at $0.85 Resistance Despite 30-40% Volume Increase

Cardano (ADA), a popular altcoin among traders, is currently facing a significant challenge in its price trajectory. The cryptocurrency is struggling to climb above the key resistance level of $0.85, despite indications of a potential bullish move. This struggle is primarily due to a drop in daily active addresses and low volatility, even though the coin has shown a robust recovery from local lows. While ADA has successfully held above the 200-day moving average as support, it has not yet managed to make its gains permanent following a short-term downtrend break.

According to data, despite a recorded 30-40% increase in trading volume for Cardano, daily active addresses have noticeably decreased. This suggests that large investors at the whale level are accumulating, contributing to reduced price volatility. The decline in individual investor participation has resulted in ADA’s price being trapped within a specific range. Moreover, the price is technically still moving within a downward parallel channel formation. Although trading above the 200-day moving average, it has not yet broken through the resistance level of this channel, which indicates a weakening of the strength among the hopeful bulls. Even short position liquidations exceeding $800 million have failed to prevent a decline in active addresses during price rises.

In ADA coin’s price chart, the Relative Strength Index (RSI) has reached an upper threshold. Entering the overbought territory could trigger an exit movement from the current price pattern (parallel channel). Such activity could lead to the establishment of a crucial technical signal known as the “Golden Cross” between the 50-day and the 200-day moving averages. Confirmation of the Golden Cross signal is recognized as the beginning of a strong upward trend that could push Cardano’s price above the $1 mark. Therefore, the weekly candlestick closure holds significant importance for ADA coin. Additionally, failure to maintain a stable rise above the $0.85 level may result in further extension of the current consolidation period.

Cardano is currently navigating a critical juncture in its price trajectory, with the cryptocurrency facing significant resistance levels while also exhibiting potential for a substantial breakout. The latest technical analysis indicates that Cardano is trading above a key support level of $0.6728, which has been crucial in maintaining its price stability. This support level has been tested and held, suggesting a bullish recovery may be on the horizon. The price is currently hovering around $0.6759, and if it can confirm a breakout from its current consolidation pattern, analysts are targeting a potential rise to $1.39.

The resistance level that Cardano is currently facing is around $0.721, which is the 50-day Simple Moving Average (SMA). Breaking through this resistance could signal a stronger bullish trend, potentially leading to further gains. However, if the price fails to breach this resistance, it may test support levels around $0.60. The development ecosystem of Cardano continues to evolve, which could provide additional support for a potential price surge.

Analysts have noted that Cardano's price action is showing signs of a potential breakout, with both technical charts and fundamental developments aligning in its favor. The cryptocurrency has shown strong price action, closing above critical support levels, which indicates a potential for a bullish recovery. If Cardano can breach the resistance levels, it could see a significant surge, potentially reaching targets as high as $1.60, according to some analysts' forecasts. However, if it fails to breach these resistance levels, it risks testing support around $0.58.

The overall sentiment around Cardano remains cautiously optimistic. The cryptocurrency's development ecosystem continues to grow, which could provide additional support for its price. However, traders and investors should remain vigilant and monitor key resistance and support levels to make informed decisions. The interplay between technical indicators and fundamental developments will be crucial in determining Cardano's price trajectory in the coming weeks.