- Cardano’s next move hinges on defending $0.80 support zone.
- Analysts predict Cardano’s long-term surge, despite short-term challenges.
- Will Cardano break resistance and reach $1.24 or decline?
Cardano (ADA) is currently at a critical juncture, with top analysts forecasting a potential surge in its price despite facing immediate challenges. According to Michaël van de Poppe, one of the leading market analysts, Cardano is in a key accumulation phase, building strength under the surface.
However, its capacity to maintain this momentum will be pegged on maintaining vital support levels, especially at the $0.80 mark.
Van de Poppe points out that Cardano has been slowly rebounding out of the 2022 slump, and the cryptocurrency is currently amassing in a different price range. To keep ADA on a rising trend, he notes that the token needs to overcome the price resistance of $1.24.
On the negative side, he points to the key support zone of $0.7460, which, in case of its violation, may indicate additional pressure to the downside. To date, the ability of ADA to stay above the level of $0.9850 is crucial in sustaining the bullish momentum.
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ADA’s Immediate Battle: $0.80 Support at Risk
In the short term, Cardano faces a more pressing issue. Analyst Ali Martinez has identified a descending triangle pattern on the ADA chart, with $0.80 serving as a key support level. Whether ADA will go in the right or wrong direction in the near future depends on the success or failure of this support.
If the $0.80 support is provided, then Cardano may restart moving to the resistance zone of $0.88-$0.90. Conversely, any fall under $0.80 may lead to a further fall, which would put ADA at risk of additional losses.
ADA is currently trading at approximately $0.8058, a loss of 3.91 per cent in the last 24 hours. The token has fallen by almost 6 per cent in the past week, lowering its market value to $29.4 billion.
The technical indicators are mixed in nature even after the adverse price action. The MACD indicator is slightly bullish, with the bluish line a little higher than the red line. However, the histogram bars indicate weak buying patterns, and RSI is at 45.39, indicating a neutral market.
Source: Tradingview
Cardano’s Path Forward
The next few days are crucial for Cardano. For the bulls to remain in control, ADA must defend the $0.80 support and clear the immediate resistance levels. If Cardano can sustain itself above the key support areas, it may precondition the emergence of an enormous rise of the cryptocurrency to the level of $1.24 and higher.
Nevertheless, any drop below $0.80 may cause additional falls, and investors will have to wait and evaluate the next step. As the long-term perspective remains positive, a good deal will be determined by whether or not ADA can continue to hold the line in the next few days.
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