Cardano (ADA), one of the leading cryptocurrencies in the market, is currently trading below the crucial $1 mark. Over the past 24 hours, ADA’s price has dropped by over 3%, reflecting growing uncertainty among investors. Despite its long-term potential, Cardano faces several hurdles that must be overcome before it can achieve a meaningful recovery.

Analysts have identified both resistance and support levels that will play a key role in determining ADA’s direction in the coming days. These levels could shape the coin’s performance, offering insight into whether it will rally or continue its downward trend.

Key Levels to Watch for Cardano

Support Zone Around $0.82–$0.83

Cardano is testing its 50% Fibonacci retracement level, a historically significant point for price movement. This zone, ranging between $0.82 and $0.83, previously acted as resistance but is now a crucial support level.

If ADA manages to hold above this range, it could stabilize and potentially rebound. However, losing this support could push the price further down, testing levels closer to $0.76.

Critical Resistance Between $1.13 and $1.23

On the upside, Cardano faces a strong resistance zone often referred to as the “golden pocket.” This area lies between $1.13 and $1.23. Breaking through this resistance could ignite a significant upward movement, with the next major target around $1.76.

However, a breakout in this region requires sustained buying pressure, which has been missing in recent sessions.

Short-Term Trends Indicate Bearish Pressure

ADA’s price chart reveals a descending parallel channel, a common pattern associated with bearish trends. This suggests that in the short term, the coin may face more downside pressure before it can regain momentum.

Despite this, the broader outlook remains optimistic. Over the long term, Cardano has maintained a pattern of higher lows and higher highs, signaling the potential for recovery once current hurdles are addressed.

Resistance Levels to Monitor

1. Immediate Resistance at $0.94Before challenging the golden pocket, ADA must first break above the $0.94 level. This zone will act as a key checkpoint for any recovery attempts.
2. Secondary Resistance at $1.07Following $0.94, the next significant resistance lies at $1.07. Overcoming this level could strengthen bullish sentiment among investors.

What Lies Ahead for ADA?

Cardano’s price movement will largely depend on whether it can hold its support zones or break through resistance levels. Here are three potential scenarios:

1. Bullish Breakout

If ADA breaks above the golden pocket resistance, it could rally toward $1.76. This scenario would require strong market momentum and improved sentiment across the broader cryptocurrency space.

2. Continued Bearish Trend

Failure to hold the $0.82 support level may lead to further declines, with the price testing lower support zones around $0.76.

3. Prolonged Consolidation

ADA might trade within a tight range between $0.83 and $0.94, consolidating until a decisive move occurs. This phase could provide opportunities for traders to assess the market and plan their next moves.

Investor Outlook

Cardano’s current struggles below the $1 mark highlight the challenges faced by many cryptocurrencies in a volatile market. While the short-term outlook remains uncertain, the coin’s long-term prospects are backed by its solid fundamentals and active development within its ecosystem.

For now, investors should closely monitor key levels and wait for clear signals before making significant decisions. A breakout or breakdown from current levels will likely dictate ADA’s trajectory for the rest of the month.