Cardano is retesting the $0.75 support level amid rising volatility. Will ADA rebound to $1, or break down toward $0.71?
The price of ADA is struggling to maintain its uptrend, as short-term volatility threatens a breakdown below the $0.75 support zone. A drop could lead to a test of the 200-day EMA at $0.71, while the chances of reclaiming $1 after the retest are diminishing.
Cardano Price Analysis
Cardano is down nearly 5% this week as supply pressure increases and Bitcoin remains stagnant near $103k. The pullback in ADA has halted last week’s 18% rally and raises concerns about a potential failure of the inverse head and shoulders pattern breakout.
The recovery peaked at $0.864 earlier this week before pulling back to retest the broken neckline around $0.75. However, increased selling pressure, driven by a broader market slowdown, supports the retest phase and raises the likelihood of a breakdown. A drop below $0.75 could lead to a retest of the 200-day Exponential Moving Average (EMA) near $0.71.
Amid rising downside risks, the Relative Strength Index (RSI) has fallen to 55 from the overbought zone, hovering near the midpoint. Despite this, the higher low trend in the RSI remains intact. A minor uptick suggests a possible rebound and hints at a return of bullish momentum.
Additionally, the convergence of the 50-day and 200-day EMAs is teasing a golden crossover, while the 100-day EMA remains flat. Overall, technical indicators point to a potential continuation of Cardano’s uptrend.
According to trend-based Fibonacci levels, the 23.60% level aligns with the $0.75 zone, indicating strong demand. A post-retest rebound from this area could face immediate resistance at the 38.20% level near $0.903. Beyond that, the 50% level at $1.010 represents a key psychological resistance, marking a 17% increase from the current price.
Analyst Targets $1 as Cardano Nears Channel Breakout
Crypto analyst Ali Martinez supports the bullish rebound thesis for Cardano. In his latest tweet, he suggests that ADA could rally to $1 following a breakout from a declining channel.
Notably, this channel forms a bull flag in the context of the ongoing uptrend on the three-day price chart. Based on the Fibonacci levels in the shared chart, the ADA rally could extend to the 100% level at $1.212.
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