Cardano has faced a critical support-to-resistance flip, with key Fibonacci levels and bullish signals suggesting potential for a rally.
Cardano (ADA) has had a relatively volatile week, experiencing moderate but negative fluctuations in its price over the past few days. The 24-hour chart shows sideways activity, with a slight 0.4% change in the last 24 hours. The price moved from around $0.439 yesterday to settle at its current value of $0.468.
This shows a stable pattern of movement for Cardano, as the price stays within a narrow range, suggesting a somewhat consolidated market over the past day.
Looking at the longer trend, in the last week, ADA has shown a more significant drop of approximately 16.8%. This performance has left market watchers speculating if ADA will continue to test support levels or flip to the bullish side and test resistance.
Cardano Price Analysis
The ADA weekly chart on TradingView shows price action that highlights key support and resistance levels based on Fibonacci retracement levels. After ADA experienced a rally, peaking at $1.01 around August 14, the price has since retraced and is now testing key Fibonacci levels for support.
The most immediate support zone lies at the 1.618 retracement level, around $0.196, which is a critical area to monitor if the price continues to decline. This level represents a strong potential reversal point.
On the other hand, the 1 retracement level, positioned around $0.5105, has flipped into resistance, as the price has already fallen below it. Above that, the 0.786 retracement level at $0.6193 and the 0.618 level around $0.70 are important areas to watch, providing resistance zones that ADA bulls must break through.
Meanwhile, the MACD at the bottom of the chart supports a bearish outlook, with the histogram showing waning bullish momentum. The MACD line is also below the signal line, another bearish indicator. This shows that ADA could continue facing selling pressure, especially if key Fibonacci support levels fail to hold.
Can Cardano Surge 1,100%?
Elsewhere, Crypto Patel, a key opinion leader on X, is actually bullish on Cardano, suggesting that the crypto has just retested the same crucial level that triggered its last parabolic run. According to his chart, ADA is trading around the bullish order block at $0.46, which he believes could be the catalyst for another explosive rally.
He points out that during the last breakout from this level, ADA surged by over 3,000% to $3.1 by September 2021. He also emphasizes that any drop below the $0.35 mark would invalidate the bullish scenario.
In his chart, he projects three key resistance levels. First resistance is at $1.203 and the next is at $2.95, while the final resistance sits around $5.81. For perspective, Cardano would need to surge approximately 1,130.34% from its current price of $0.468 to reach $5.8.
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