Cardano (ADA) is currently in a consolidation phase after falling below the critical $1.00 mark, raising questions about its next move. The cryptocurrency, which had previously shown strong momentum, is now navigating a complex price structure with resistance at key levels of $1.020 and $1.040. The outlook for ADA is uncertain, but technical indicators are showing signs of potential recovery, with bullish traders eyeing a break above these resistance points.

Cardano’s Recent Price Action

The recent decline in ADA’s price began after the cryptocurrency faced rejection at the $1.120 resistance zone, a level that has proven difficult for ADA to surpass. This rejection is part of a broader trend seen across the market, as major cryptocurrencies like Bitcoin and Ethereum have also faced downward pressure. Cardano’s price dropped below multiple support levels, including $1.10 and $1.050, before finding temporary support around $0.9151.

Currently, Cardano is stabilizing above the $0.940 level, a critical point that has allowed the asset to recover slightly. This recovery also saw ADA surpassing the 23.6% Fibonacci retracement level of the downward move from $1.1113 to $0.9151, suggesting that while selling pressure remains, there is growing interest from buyers at these levels.

Resistance Levels and Technical Developments

One of the key developments in Cardano’s price chart is the formation of a bearish trend line with resistance at $1.015 on the hourly chart. This resistance point aligns with the 50% Fibonacci retracement of the recent decline, making it a significant barrier for ADA to overcome. Additionally, the $1.020 level is proving to be a crucial resistance, with multiple attempts to break above it met with selling pressure.

For ADA to see further upside, it needs to clear the $1.020 resistance. If the bulls manage to push the price above this level, the next key target would be $1.050. A successful breach of this level could pave the way for ADA to test the $1.0650 mark, with the potential for further gains towards the $1.10 region.

Support Levels and Market Dynamics

On the downside, Cardano has established support levels at $0.9450 and $0.9200, which have served as price floors during recent declines. These levels are critical for ADA to maintain its current consolidation pattern. If selling pressure persists and ADA fails to hold above these support zones, the next significant support area would be $0.9200. A break below this could trigger further declines, with $0.90 acting as a psychological support level.

The $0.8650 level is another key support zone, where previous price action suggests strong buying interest may emerge. If ADA drops to this level, it could become the last line of defense for bulls, as it has historically been a point where buyers have stepped in.

Technical Indicators and Momentum

Looking at technical indicators, there are mixed signals about Cardano’s short-term direction. The hourly MACD (Moving Average Convergence Divergence) shows diminishing bearish momentum, suggesting that selling pressure may be waning. However, the Relative Strength Index (RSI) remains below the 50 mark, indicating that the bears still have some control over the market. This divergence suggests that while the downtrend may be losing strength, it is not yet fully reversed.

The overall price structure is showing a series of lower highs, which typically signals a bearish trend. However, the decreasing momentum in the downward moves hints at a potential exhaustion of selling pressure. If the price can maintain its position above current support levels, a breakout could be imminent.

The Path Ahead for Cardano

Cardano’s next directional move depends heavily on whether it can break above the key resistance levels at $1.020 and $1.050. If the bulls succeed in overcoming these levels, ADA could target higher prices, with $1.0650 and $1.10 in sight. However, if the price fails to gain traction and support levels are broken, a deeper pullback toward $0.920 or even $0.8650 could be on the horizon.

For traders, the next few days are crucial in determining Cardano’s short-term direction. The market is currently in a wait-and-see mode, with neither bulls nor bears showing overwhelming conviction. However, with the weakening bearish momentum and the potential for a breakout, Cardano could soon find itself at a pivotal point.