Cardano (ADA) Price Alert: Bulls Defend Key Support – Is a Major Breakout Imminent?

Cardano's ADA is flashing bullish signals as it holds critical support levels—but can the buyers actually push for new highs?

After weathering another crypto winter, ADA's chart shows resilience. The $0.45 support zone has become a battleground, with whales accumulating while retail traders panic-sell (classic).

Technical indicators suggest momentum is building. The RSI coiled near 50, volume patterns favor buyers, and a descending wedge hints at explosive potential. Meanwhile, Ethereum killers keep multiplying like unregulated ICOs.

If bulls break the $0.55 resistance, we could see a 30% surge toward $0.72. But if support cracks? Welcome back to $0.38—where 'long-term holders' become 'bagholders.'

Either way, Cardano's proving it's more than just a 'ghost chain.' Now if only those smart contracts could print money like the Fed...

TLDR

• Cardano declined from $0.590 zone and is now consolidating above key support levels
• ADA is trading above $0.560 and the 100-hourly moving average with bullish trend line support at $0.5640
• Key resistance levels are at $0.5820 and $0.590, with potential rally to $0.620 if broken
• Technical indicators show bearish momentum weakening with RSI making higher lows
• ADA bounced from $0.51 support and established higher low at $0.545, suggesting possible bullish structure shift

Cardano price has entered a period of sideways movement after declining from the $0.590 resistance zone. The cryptocurrency is currently consolidating above key support levels while traders watch for signs of a potential reversal.

ADA started a fresh decline below the $0.5820 and $0.5750 levels in recent sessions. The bears pushed the price below the 50% Fibonacci retracement level of the upward MOVE from the $0.5567 swing low to the $0.5902 high.

The price even spiked below the $0.570 support level but managed to stay above $0.5650. A key bullish trend line is forming with support at $0.5640 on the hourly chart.

This trend line sits close to the 76.4% Fibonacci retracement level of the recent upward move. Cardano price is now trading above $0.5650 and the 100-hourly simple moving average.

Technical Resistance Levels

On the upside, ADA might face resistance NEAR the $0.5735 zone. The first major resistance level is positioned near $0.5820.

The next key resistance might be $0.590. If the price closes above the $0.590 resistance, it could trigger a stronger rally toward the $0.620 region.

Any further gains might call for a move toward $0.6350 in the near term. However, breaking these resistance levels will require sustained buying pressure.

Support Structure Remains Strong

If Cardano fails to climb above the $0.5820 resistance level, it could start another decline. Immediate support on the downside is near the $0.5640 level and the trend line.

The next major support sits near the $0.5460 level. A downside break below this level could open doors for a test of $0.5250.

Over the past week, ADA has bounced from the $0.51 support level. The cryptocurrency established a higher low at $0.545, which could indicate a potential shift in market structure.

The RSI has made higher lows over recent days, indicating that bearish momentum is beginning to weaken. The On-Balance Volume also saw a small bounce from recent lows.

Market Context and Technical Indicators

The hourly MACD for ADA/USD is gaining momentum in the bearish zone. The hourly RSI is currently below the 50 level, reflecting the current consolidation phase.

Cardano and the broader altcoin market faced losses throughout June. The TOTAL2 metric, which captures combined crypto market cap excluding Bitcoin, has been unable to climb above the $1.25 trillion mark since February.

The most recent attempt on June 11 was followed by a sharp rejection. This retracement also saw Bitcoin sink below the $100k mark momentarily.

If ADA can break the $0.594 local high from last Tuesday, it WOULD shift the market structure to bullish. Sustained upward movement in volume indicators would showcase greater demand.

This could see ADA bounce to $0.62 or $0.65 in the short term. However, the major structure has remained bearish following the DEEP drop from $0.73 seen earlier in June.

ADA is currently trading above $0.560 with key support at $0.5640 and resistance at $0.5820.