Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, finds itself at a crucial juncture, caught between two key price levels that will likely determine its next move. At the time of writing, Cardano is trading between its 50-day simple moving average (SMA) at $0.677 and its 200-day SMA at $0.762. This narrow range has become a battleground for both bulls and bears, as ADA’s price fluctuates between these levels.

The 50-day SMA serves as a potential short-term support level, offering a cushion that could protect the price from further downside pressure. Should Cardano manage to maintain this support, it could hold the line and avoid any major losses. However, the 200-day SMA is seen as a significant resistance level, and overcoming this could unlock the potential for a new bullish trend. For now, Cardano’s price remains confined to this tight range, signaling an ongoing battle for control between the bulls and the bears.

A decisive break above the 200-day SMA could lead to a sustained rally. Such a move would open the door for Cardano to target higher price levels, possibly setting the stage for a more extended uptrend. On the flip side, failure to hold above the 50-day SMA could trigger additional selling pressure, pushing Cardano’s price lower. The coming sessions will likely be crucial in determining whether ADA can break out of this narrow range or continue its consolidation.

Recently, Cardano posted a slight increase of 0.34% in the last 24 hours, reaching $0.722. Over the past week, it has gained approximately 15%, showing a bit of strength despite market volatility. On April 23, Cardano closed above the 50-day SMA at $0.677, which was significant because the 50-day SMA had acted as resistance since December 2024. This break above the SMA suggests that the bears may be losing control, and the bulls are making a push for a higher price.

If Cardano can maintain its position above the 50-day SMA and convert it into support, the next resistance level would be the 200-day SMA at $0.762. If this level is breached, Cardano could aim for the $1 mark, a psychological level that traders and investors often watch closely. Achieving this would be a major milestone for Cardano, signaling the potential for more bullish momentum in the longer term.

Conversely, if the price fails to hold above the 50-day SMA, a decline could target the next support levels at $0.594 and $0.552. These support zones represent key levels that traders will be watching carefully, as a breakdown below them could signal further weakness. As a result, Cardano’s price trend in the near term might closely mirror that of Bitcoin (BTC), with both assets potentially facing similar market conditions.

Meanwhile, Bitcoin’s recent performance has shifted market sentiment. According to Santiment, Bitcoin’s unexpected breakout above the $95,000 mark for the first time since February has fueled a wave of optimism within the crypto community. This newfound optimism could spill over into other cryptocurrencies, including Cardano, as traders and investors become more confident in the market’s recovery. However, some market analysts suggest that the crypto weekend could be relatively flat or experience a mild retrace as retail traders look to take profits from the recent surge.

At this critical point, Cardano’s ability to break through its current price range will be key to its short- and long-term performance. Whether the asset will continue to consolidate or experience a breakout will depend on several factors, including broader market trends, Bitcoin’s performance, and investor sentiment toward ADA specifically. The coming sessions will reveal whether Cardano can hold above the 50-day SMA and target its next resistance or if it will falter and fall back to lower levels.