Cardano (ADA) Price Update: Critical Levels and Potential Breakout to $1.20 – BlockNews
😲 Cardano ($ADA) is holding above the key $0.80 level, but selling pressure outweighs buying interest, increasing the risk of further downside unless bullish momentum strengthens. Analysts see $1.20 as a major resistance target, with historical patterns suggesting that ADA tends to consolidate before strong rallies, making a breakout possible if $0.85–$0.90 is reclaimed. Derivatives data signals caution,
- Cardano ($ADA) is holding above the key $0.80 level, but selling pressure outweighs buying interest, increasing the risk of further downside unless bullish momentum strengthens.
- Analysts see $1.20 as a major resistance target, with historical patterns suggesting that ADA tends to consolidate before strong rallies, making a breakout possible if $0.85–$0.90 is reclaimed.
- Derivatives data signals caution, with open interest rising but options volume plunging 92.94%, indicating a decline in speculative bets and uncertain market sentiment.
According to Coinglass data, long positions at $0.804 and $0.84 total $9.11 million, while shorts amount to $5.45 million. This seller-favored imbalance raises the risk of further downside—unless buying pressure intensifies. However, the rising open interest suggests liquidity is increasing, which could bring heightened volatility to ADA’s next move.
Can ADA Hold Above $0.80?
Cardano is currently balancing at critical technical levels. The 50-day EMA sits at $0.8072, while the 200-day EMA is positioned at $0.7376. Right now, ADA is hovering just above the 200-day EMA, an area that often dictates broader market trends.
The Relative Strength Index (RSI) has ticked up to 50.48 from yesterday’s 50.39, indicating that bullish momentum is slowly building—but not enough to confirm a breakout just yet. If RSI pushes above 55, it could signal a stronger shift in sentiment.
Crypto trader Crypto Rand has pointed out that $0.65 remains a critical support zone, stating, “ADA continues defending the 65-cent range. Really important support.” A break below this level could accelerate selling, while a bounce could trigger short-term recovery.
Will ADA Break Above $1.20?
Despite short-term bearish pressure, historical data suggests ADA often consolidates before major price surges. Analyst Ali Martinez reaffirmed that Cardano’s long-term structure remains intact, as long as it holds above $0.80.
According to Martinez, “ADA has a history of long consolidation periods before strong rallies. Breaking above $1.20 could shift the trend.” The $1.20 zone represents a major resistance level, aligning with past market cycles where ADA struggled before surging higher.
A sustained push above $0.85–$0.90 could pave the way for a move toward $1.20. However, if buyers fail to reclaim these levels, ADA may remain vulnerable to further downside pressure.
Derivatives Data: Market Uncertainty Remains
Open interest has increased 2.16% to $771.55 million, while total trading volume dropped 10.37% to $1.62 billion. More notably, options volume plummeted 92.94% to just $6.59K, suggesting a decline in speculative interest.
From a technical perspective, if ADA holds above $0.80 and attracts enough buyers, a breakout toward $1.20could materialize. However, failure to reclaim key resistance levels may lead to another retest of lower support levels.
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