ADA Eyes Bullish Reversal
ADA has been range-bound between $0.69 and $0.75 over the past few weeks, struggling to gain sustained momentum amid broader market consolidation.
ADA Price | Source: TradingView
However, its recent move to retest the $0.74 - $0.75 region has drawn renewed interest from traders looking for a potential breakout setup.
The price is now pressing against a major resistance level near $0.77 confluent with the current position of the 50-day Exponential Moving Average (EMA). Historically, this EMA has acted as a ceiling for ADA, and a breakout above it could spark a bullish continuation.
On the 12-hour chart, Bollinger bands have begun to tighten, which indicates an imminent spike in volatility. This kind of setup typically precedes large price moves, either up or down, so traders are watching closely.
Indicators Show Mixed Signals
From a technical perspective, Cardano’s indicators offer a cautiously optimistic outlook.
The MACD (Moving Average Convergence Divergence) recently completed a bullish crossover, which suggests an upward momentum is building. This crossover has often preceded price surges in the past, especially when paired with strong volume.
Meanwhile, the Relative Strength Index (RSI) is hovering just below the neutral 50 line. A clean break above this level would add confirmation to the bullish case, showing that buying pressure is beginning to outpace selling pressure.
Still, the trend is not yet confirmed. ADA needs to break and close above $0.76–$0.77 with conviction to escape its current range and open the door to higher levels.
On-Chain Data Supports Bulls
Beyond price charts, on-chain fundamentals have strengthened Cardano’s outlook.
In recent weeks, Cardano whales (holders of large ADA amounts) have accumulated over 240 million ADA tokens, pushing their total holdings to more than 3.27 billion ADA. This accumulation trend signals growing confidence among institutional investors and long-term holders.
Further supporting this view, the stablecoin market cap within the Cardano ecosystem has reached an all-time high of $30.77 million. This increase in stablecoin activity often precedes growth in DeFi usage, which could enhance ADA's value proposition and network activity.
Key Levels to Watch
If ADA manages to clear the $0.77 barrier, analysts are watching for a possible surge toward $0.85, representing a roughly 13% upside from current levels. That would mark a bullish breakout from ADA’s multi-week consolidation phase and could pave the way for a broader rally.
The next significant resistance beyond $0.85 lies near $1.00, a psychological level and former support zone. If bulls maintain momentum, ADA may then target the $1.30–$1.80 range, especially if Bitcoin continues its broader uptrend and market sentiment improves.
On the flip side, failure to clear the $0.77 resistance could see Cardano slide back toward support at $0.69. A breakdown below that level would invalidate the short-term bullish setup and reintroduce bearish pressure, with the next support near $0.64.
Can the Bulls Hold?
For now, ADA remains in a holding pattern, but the technical and on-chain signals lean in favor of the bulls. The combination of whale accumulation, a bullish MACD crossover, and rising stablecoin activity paints a promising picture. However, all eyes are on the $0.77 resistance level.
A decisive move above that threshold could trigger a new rally phase for Cardano, bringing it back into the spotlight as one of the more fundamentally strong Layer-1 protocols.
However, if bulls stumble here, ADA may continue to range-bound or even retreat, especially if broader market volatility increases.
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