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- Cardano faces strong resistance at $0.9440, with key support at $0.6225.
- Momentum indicators suggest a potential breakout toward $1.30-$1.50 if buying pressure increases.
- Failure to hold support could lead to a retest of $0.70-$0.65.
Cardano's ADA is heating up as buyers step in and momentum builds. Open Interest jumped above $1.5 billion recently, signaling fresh capital flowing in. But that number has dropped below $1 billion, raising questions about whether a breakout is coming or another pullback is ahead.
Key Resistance Levels and Market Signals
ADA trades at $0.7634, showing a 4.23% gain today. A major roadblock sits at $0.9440, where the 50-day moving average stands. A push above this level could open the door to $1.00-$1.10, a critical Fibonacci extension zone. Support remains strong at $0.6225, where buyers stepped in during previous corrections.
Holding this level could fuel further upside. Momentum indicators show mixed signals. The RSI sits at 33.36, approaching oversold conditions. Previous dips below 35 have triggered sharp rebounds. If buying pressure increases, a rally could follow.
Technical Indicators Hint at a Big Move Ahead
The MACD histogram points to weakening bearish momentum. A bullish crossover could confirm a shift in trend. On the other hand, the Directional Movement Index (DMI) suggests market strength remains intact. But for bulls to take control, the +DI must cross above the -DI.
Breaking the $1.00-$1.10 zone could send ADA soaring toward $1.30-$1.50. Fibonacci extensions and historical trends support this move. If momentum fades, a drop toward $0.70-$0.65 could follow. Buyers have defended this range before, making it a key level to watch.
For now Cardano's ADA is at a crucial juncture. A breakout could trigger a major rally, but failure to hold support could bring another test of lower levels. The next few days will determine the direction.
