Cardano (ADA) is at a crucial turning point as it attempts to hold support at $0.75 amid a wave of selling pressure and market-wide uncertainty. Despite last week’s impressive 18% rally, ADA has dipped by nearly 5% this week, challenging bullish momentum and raising concerns of a potential breakdown. However, market analysts remain cautiously optimistic, highlighting key technical indicators that suggest a rebound toward the $1 mark is still possible.

Price Pullback Tests Bullish Structure

ADA’s price action has recently experienced a notable pullback after peaking at $0.864 earlier in the week. The token retraced to retest a major support level at $0.75, which also aligns with the neckline of a previously broken inverse head and shoulders pattern. This retest comes as Bitcoin remains range-bound near $103,000, limiting bullish momentum across the broader market.

Technical analysis shows that if ADA fails to hold this support level, the price could slip toward the 200-day Exponential Moving Average (EMA) at around $0.71. However, this area may also serve as a critical zone for buyers to step in, helping Cardano sustain its larger uptrend.

RSI and EMAs Signal Cautious Optimism

The Relative Strength Index (RSI), a key momentum indicator, has dropped from overbought levels to 55, hovering around the neutral midpoint. While this decline may reflect the current loss of momentum, the RSI’s higher low formation hints at the potential for a bounce, suggesting that bullish sentiment hasn’t completely vanished.

Moreover, a possible golden crossover—where the 50-day EMA crosses above the 200-day EMA—is forming on the daily chart. This is generally seen as a bullish signal, reinforcing the likelihood of a continued uptrend if the current support levels hold. The 100-day EMA remains flat, indicating consolidation, but may tilt upward with renewed buying pressure.

Fibonacci Levels Highlight Critical Zones

Using Fibonacci retracement levels, technical analysts identify $0.75 as a key demand zone, aligning with the 23.6% retracement level. A successful rebound from this level would face immediate resistance near $0.903 at the 38.2% level, followed by a psychological resistance barrier at the 50% level or $1.01.

Reaching the $1 level would mark a significant 17% price increase from current levels and re-establish Cardano’s position in the spotlight of the ongoing market recovery.

Analyst Ali Martinez Backs Bullish Breakout

Prominent crypto analyst Ali Martinez has added weight to the bullish argument. In a recent social media post, he highlighted ADA’s potential for a breakout from a descending channel, suggesting the pattern resembles a bull flag—a continuation setup that often precedes strong upward moves.

According to Martinez, a confirmed breakout from this channel could see ADA rise to as high as $1.212, based on trend-based Fibonacci extensions. His analysis supports the broader market view that Cardano may still have room to rally if key support levels remain intact and the overall crypto market strengthens.

Conclusion: Key Levels to Watch

As Cardano tests its resilience around the $0.75 mark, traders and investors are watching closely for a decisive move. A breakdown below support could lead to further declines toward $0.71, while a strong bounce may reignite the path to $1 and beyond.

For now, ADA’s future hinges on whether bullish momentum can return in time to turn this support test into the springboard for its next leg higher.