TLDR
- Cardano forms a descending resistance trendline, rejecting repeatedly near $0.90–$0.95.
- The RSI approaches oversold levels at 38, historically signaling major rebounds for ADA.
- MACD shows signs of a potential bullish crossover as momentum begins to stabilize.
- Sustained closes above $0.70–$0.75 could confirm a recovery toward $0.90 and $1.00.
Cardano (ADA) remains under moderate selling pressure as it struggles to regain momentum after recent pullbacks. The token is hovering near the $0.65–$0.68 range, where several technical indicators suggest an upcoming shift in sentiment. Although ADA has failed to break through key resistance levels in the short term, signs of possible recovery are appearing in momentum indicators such as the MACD and RSI.
Descending Resistance Structure Limits Cardano’s Upside
Cardano shows a well-defined descending resistance trendline, marked by three lower highs between August and October. Each time, the price faced rejection near the $0.90–$0.95 area, reinforcing it as a strong sell zone. Beneath that, the token continues to face horizontal resistance between $0.70 and $0.75, a region that has repeatedly halted upward movement.
ADA/USD 1D Chart | Source: X
The MACD indicator remains below the signal line, reflecting lingering bearish momentum. However, the histogram’s gradual contraction points to a potential crossover forming—an early sign of momentum reversal. If ADA closes above $0.68–$0.70 with increased volume, traders may interpret this as a bullish confirmation.
Momentum Indicators Signal Possible Market Stabilization
Moreover, the Relative Strength Index (RSI) provides a more optimistic view of Cardano’s current setup. At around 38, the RSI is nearing the oversold region where past recoveries began. Similar readings in 2020, 2022, and mid-2023 preceded strong upward reversals as traders began accumulating at lower levels.
ADA/USD 1D Chart | Source: X
At the same time, the 200-day simple moving average (SMA) at approximately $0.68 continues to act as a crucial dynamic barrier. Sustained movement below this level shows that broader market confidence remains fragile. However, breaking and holding above it would confirm strength returning to the trend.
Long-Term Chart Patterns Suggest Compression
Nonetheless, ADA’s long-term structure still reflects a macro downtrend formed since the 2021 peak near $3.10. The token has continued to register lower highs and lower lows, a pattern that defines extended bearish markets. The inability to sustain levels above $1.10 earlier in 2025 confirmed that the macro downtrend remains intact.
Still, the decreasing volatility visible on daily charts suggests that price compression may be nearing its limit, often a prelude to a strong breakout phase. Should Cardano reclaim the $0.70–$0.75 range and convert it into firm support, analysts anticipate potential moves toward $0.90 and $1.00.
Investors Watch for Confirmation of Trend Reversal
Consequently, market sentiment surrounding Cardano appears divided between cautious optimism and lingering scepticism. Momentum indicators suggest early signs of strength, yet the price continues to struggle below meaningful resistance barriers. Traders are now focused on confirming whether the ongoing compression phase will transition into a bullish breakout or remain locked in sideways action.
If the RSI confirms a rebound and price action closes above the 200-day SMA, ADA could begin forming a new bullish structure heading into late 2025. Until such confirmation emerges, investors remain watchful, acknowledging that the $0.65–$0.70 zone may serve as the defining battleground between renewed recovery and continued consolidation.
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