- ADA holds at $0.76, rebounding from $0.60. Key support at $0.72, resistance at $0.93, with $1 as a major psychological barrier.
- RSI at 31.45 shows oversold conditions, while MACD remains bearish. A break above $0.80 could lead to a rally toward $0.93.
- Hoskinson teases major February developments, fueling speculation. ADA must stay above $0.72 to maintain bullish potential.
Cardano’s ADA has had substantial price swings in recent weeks, moving from a December high of approximately $1.30 to a sharp drop at $0.60 on February 3 during the market crash. The asset has recovered, trading at $0.7641, a 1.31% increase. ADA has a market cap of $26.88 billion. It remains to be seen whether it can break the $1 resistance level in the coming days.
Support and Resistance Levels
ADA has been trading between key technical levels, with the 200 day EMA at $0.72 being the strong support. The 50 day EMA, at $0.93, is the short term resistance. If the price remains above $0.72, there is potential for a rebound toward $0.80.
However, a break below this level could push the asset lower, testing $0.70 and potentially dropping to $0.66 if selling pressure increases. The $1 level is a major psychological barrier, with buyers needing strong momentum to break it.
The RSI, at 31.45, is approaching the oversold levels. If it goes above 40, bullish momentum could strengthen. The MACD shows bearish sentiment, with negative histogram bars widening. A bullish crossover could indicate a shift in trend, but this has not yet occurred.
Potential Scenarios for ADA
ADA’s price will depend on its ability to maintain support at the 200 day EMA. If buyers step in and push the price above $0.80, the next resistance is at $0.93. Breaking this level would improve the chances of testing the $1 resistance.
However, failure to hold support at $0.72 could lead to a deeper pullback, with $0.66 as the next support zone. Whether ADA can replicate its previous bull cycle, remains speculative but there is optimism.
According to Ali, the asset surged from under $0.10 to over $3 in 2021. If a similar breakout occurs, ADA could see a sharp upward move. However, sustaining gains above $0.90 remains crucial for any long term rally.
Upcoming Moves and Market Sentiment
Speculation around ADA’s future price action has also been fueled by comments from Cardano founder Charles Hoskinson. He hinted at major developments for the blockchain in February, stating,
“February is going to be a very crazy month. We’ve got some stuff going on. I can’t talk about it now, but you’re gonna see. it’s gonna be fun.”
This has led to increased anticipation in the crypto community, waiting for any major announcements that could impact ADA’s valuation. For now, ADA is in a critical position. The asset’s next move depends on whether it can maintain support at $0.724 and push past resistance levels.
