Buyers have resolutely defended the critical support zone at $0.75, opening up the possibility for an ADA recovery towards the psychological level of $1. In the crypto market, strong recoveries are often accompanied by sharp correction phases, and Cardano (ADA) is no exception to this rule. The recent decline can be seen as a "shakeout" of weak-handed investors, laying the foundation for a more sustainable growth trend.
The question is: Has ADA reached a short-term peak, or is this just a healthy correction that offers an attractive buying opportunity? Let's analyze the technical chart to clarify ADA's upcoming prospects.
Cardano (ADA) Price Prediction
ADA broke through the resistance level of $0.86 on Monday, but the bulls could not maintain the upward momentum at higher levels, indicating that selling pressure remains strong in this area.
After surpassing the $0.86 threshold, ADA's price sharply reversed on Wednesday, breaking through the breakout zone and falling near the 20-day SMA at $0.73 on Thursday. However, the long lower candle shadow indicates strong buying pressure emerged at lower levels, reflecting the bulls' efforts to defend the support zone.
In the short term, buyers may continue to challenge the upper resistance zone at $0.94. If the price successfully breaks through this level, the ADA/USDT pair could extend its upward momentum to $1.02, and potentially even target a higher level at $1.17.
Conversely, if the price drops back and breaks below the 20-day SMA, this would suggest that the breakout above $0.86 was just a "Bull Trap". In this scenario, the price could continue to correct deeper towards the 50-day SMA at around $0.66.
On the 4-hour chart, the moving averages are approaching a bearish crossover, indicating that the bears are trying to regain control. In this context, recoveries are likely to face strong selling pressure at the 20-day SMA.
If the price cannot break through the SMA 20 and reverses downward, the ADA/USDT pair may continue to correct to the support zone of $0.75, and potentially deeper to $0.70. The deeper the correction, the longer the accumulation time needed before forming a new upward movement.
Conversely, if buyers can push the price above the 20-day SMA, this would indicate that selling pressure is weakening and the bulls are gradually regaining the initiative. At that point, the price could recover to $0.90 and then to the resistance zone of $0.94.
This article does not contain investment advice or recommendations. All investments and trading activities carry risks, and readers should conduct their own research before making decisions.
