Cardano (ADA) is showing signs of resilience. Currently priced at $0.9424, ADA has dropped by 1.56% over the past 24 hours, but it has seen an overall gain of 5.47% in the past week. This price action comes despite broader market corrections, highlighting ADA’s ability to hold ground during challenging market conditions. Analysts are now focusing on ADA’s next potential move, particularly its ability to break key resistance levels that could trigger a new uptrend.

Cardano’s Support and Resistance Levels

Currently, ADA is hovering above its critical support level at $0.83, which aligns with the 50% retracement level on the Fibonacci chart. This area has proven to be a key point for buyers, providing the necessary foundation for ADA to maintain its upward momentum. The cryptocurrency has shown a consistent ability to bounce from this level, suggesting that this support is holding strong.

However, the key challenge for Cardano lies at the upper resistance range. ADA is facing substantial resistance in the “golden pocket” zone, which spans from $1.13 to $1.23. This Fibonacci resistance range has been a significant barrier for Cardano over the past several weeks, limiting the token’s ability to break out. ADA has been trading within a consolidation range between $0.83 and $1.20, unable to make decisive moves beyond these boundaries. Despite this, the general trend remains bullish due to ADA forming higher lows and higher highs over the long term.

Cardano’s Bullish Outlook: A Breakout Above $1.23

For Cardano to start a new bullish leg, it needs to clear the golden pocket resistance. If ADA can break through the $1.13-$1.23 zone, analysts are optimistic that it could target the next Fibonacci resistance range between $1.70 and $1.76. These levels are in line with previous price action and represent ADA’s potential upward trajectory if the breakout materializes.

Clearing the golden pocket would also signal a shift in market sentiment, potentially attracting more investors to the asset. This could fuel a fresh rally, similar to the market behavior seen during previous bullish cycles. Cardano’s strong fundamentals and its growing adoption could help push the price towards these higher targets.

The Influence of Bitcoin on Cardano’s Price

It’s essential to remember that Bitcoin (BTC) continues to play a pivotal role in the price movement of all cryptocurrencies, including Cardano. Bitcoin’s fluctuations often impact the broader market, and ADA’s price could respond to Bitcoin’s movements, especially during periods of high volatility. Investors should keep an eye on Bitcoin’s price action, as any major moves from the leading cryptocurrency could trigger corresponding reactions in ADA and other altcoins.

Key Takeaways for ADA Traders and Investors

Despite recent market downturns, Cardano’s price structure remains strong. Holding above the $0.83 support level is a positive sign for ADA, indicating that it could be positioning itself for a breakout. The main focus for ADA investors should be the $1.13-$1.23 resistance zone. If Cardano breaks through this level, it could open the door to a rally towards $1.70 or higher. However, should ADA fail to break past this resistance, it may continue to trade within its current range for a longer period.

Ultimately, ADA’s price action will depend on both the broader market sentiment and its ability to overcome significant resistance levels. Investors should stay alert and watch for any shifts in market dynamics, as a breakout above $1.23 could signal the start of a new uptrend for Cardano.