Cardano Squeezed Between Critical Support and Resistance - The Market Holds Its Breath
Cardano's price action tightens like a coiled spring—traders brace for the next explosive move.
The Pressure Cooker
ADA finds itself trapped between two formidable technical levels, creating one of the most tense standoffs in recent crypto memory. Support holds firm like seasoned veterans while resistance pushes back with equal force.
Market Psychology at Play
Every trader's screen becomes a battlefield of wicks and candles—each movement scrutinized for hints of the impending breakout. The silence before the storm feels heavier than another Wall Street analyst's price prediction.
The Breaking Point
When this compression finally releases, it won't whisper—it'll roar. The question isn't if, but when and in which direction. One thing's certain: someone's about to make money, and someone's about to learn another expensive lesson about leverage.
Bearish AB=CD Pattern Completed With Rejection At $0.95
Alpha crypto Signal, a crypto analyst on X, recently shared insights on Cardano’s price action, noting that ADA has just completed a bearish AB=CD pattern on the daily timeframe. The rejection around the $0.95 level confirms this setup, suggesting that the market may be preparing for a corrective move. Such harmonic patterns often signal exhaustion in the preceding trend, hinting that ADA could face additional downward pressure in the short term.
Currently, Cardano is trading below the 9-day EMA at $0.88, indicating that momentum has weakened following its recent attempts to push higher. Trading beneath this moving average often reflects a bearish shift in sentiment, where buyers struggle to maintain control.
The analyst highlighted a critical support zone between $0.74 and $0.77, which will likely act as the first line of defense for bulls. Should this area give way, ADA could extend its decline toward the $0.70–$0.68 range, marking a deeper retracement and potentially testing the patience of long-term holders.
Still, the outlook is not entirely bearish. According to the analysis, bulls could regain momentum if ADA manages to reclaim the $0.90 level and establish support above it. A successful recovery beyond this threshold WOULD weaken the bearish narrative and possibly set the stage for another upward push.
Cardano Holds Key Level After Pullback
CryptoPulse, another market analyst, noted in an X update that cardano is currently holding above a key support level following a pullback. This resilience suggests that buyers are still defending critical price zones despite recent bearish pressure.
Related Reading: Cardano Defies Market Pullback: Could On-Chain Momentum Signal a 70% Run Ahead?
According to the analyst, as long as the price maintains this support just above $0.80, ADA has the potential to rebound toward the $1.06 region, which aligns with the 0.382 Fibonacci retracement level. A MOVE in this direction would indicate that momentum is shifting back in favor of the bulls.
However, CryptoPulse cautioned that if support fails and ADA breaks lower, a backtest could occur, raising the risk of the price revisiting its range lows. Such a move would reinforce bearish sentiment and potentially delay any significant recovery attempts.
In the meantime, the levels are clearly defined, leaving the market to decide its next direction. Whether ADA manages to build on its current support and push higher, or slips back into deeper corrective territory, will depend on how traders respond around these pivotal zones.
