Cardano is facing resistance, but an analyst believes the reclaimed support could lead to further upward momentum.
Notably, Cardano (ADA) is currently trading for $0.392, reflecting a 0.7% drop over the past 24 hours, with a daily range between $0.382 and $0.398.
Despite the slight drop, ADA is maintaining support above the $0.38 level, showing some resilience in a volatile market. The occurs amid escalating geopolitical tensions between Iran and the USA, which typically lead to heightened market uncertainty and a flight to safe-haven assets.
Against Bitcoin, Cardano has underperformed, with a 1.4% decline in value relative to BTC over the same period. The $541 million trading volume indicates active participation, but market sentiment remains cautious as investors react to the global tensions.
As geopolitical risks loom, ADA’s ability to hold above support levels will be crucial in determining whether it can recover or face further pressure in the coming days.
Cardano Price Analysis
The 1D chart indicates a significant shift in Cardano’s price action, with the Parabolic SAR recently flipping from below the price to above it, now signaling potential resistance. This suggests that the market sentiment has turned cautious, and the upward momentum may face hurdles above the current price level at $0.436.
Above the Parabolic SAR, the next liquidity zones to the upside are at $0.45 and $0.46, where previous price action suggests potential areas for price rejection or continuation. However, if ADA fails to breach the Parabolic SAR resistance and struggles to maintain momentum, the price could revisit lower levels.
In this scenario, the next support zones will likely sit around $0.35 and $0.33, where the price may find buying interest. In addition, the Standard Deviation indicator is showing a flat line. This flatness indicates that the price action is stabilizing, and traders are awaiting a clear breakout or breakdown.
ADA Social Media Commentary
Meanwhile, in a recent analysis, Surya, an analyst on X, highlighted Cardano’s price action as an ideal setup for his trading approach. He observed a strong bounce from $0.33 on December 31, 2025, reaching up to $0.43. This price movement breached the falling wedge pattern and successfully broke through resistance.
This breakout led to a 26% potential expansion into overhead liquidity, which Surya views as a clear confirmation of both the divergence and a significant structural shift. He now anticipates that the reclaimed red demand zone could spark another rally, potentially pushing ADA towards $0.48.
As long as this support level holds, any pullbacks should be seen as normal and not a sign of weakness. However, Surya also cautions that macro-driven events could disrupt this technical setup, emphasizing the importance of proper risk management.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
