Key Takeaways
How is Cardano doing on the price charts?
On the 1-day timeframe, it seemed bearish. As long as $0.6 holds as support, a recovery is possible.
What are the key resistances ADA needs to beat to allow swing traders to enter?
A move past the local high at $0.736 would be a good start. The $0.892 swing high is also a key resistance. If breached, a rally to $1.3 would be the next expectation.
In a previous report, AMBCrypto explored how Cardano’s [ADA] price trends swiftly turned bearish after the fallout from 10 October’s liquidation events.
It was observed that the trading volumes did not align with the magnitude of the price move.
The price had filled the imbalance at the $0.66-zone, and that was where ADA continued to trade at the time of writing.
The market sentiment seemed fearful, but Bitcoin’s [BTC] bounce above the short-term resistance at $108k was a good start to Monday.
Could this be the local bottom? Can Cardano rally past the psychological $1-level in 2025?
Examining Cardano’s higher timeframe structure
Source: ADA/USDT on TradingView
The swing structure on the weekly timeframe (orange) has been bullish. This came about after the explosive rally in November 2024. The price action in 2025 can be thought of as a retracement following that move.
This retracement has begun to move in the direction of the initial impulse move. The internal structure (white) showed that the swing points at $0.51 and $1.02 were the key weekly levels for traders and investors.
A move beyond $1.02 would be a bullish break and a signal that the push towards the $1.32 highs would continue.
However, there are some obstacles ahead before this can be achieved. The first is an imbalance at $0.736-$0.778. This area would serve as a resistance in the coming days and could delay any bullish moves.
A $1 Cardano target
Source: ADA/USDT on TradingView
The structure on the daily timeframe also appeared bearish, and the key levels to watch on this timeframe would be $0.61 and $0.89. In the short term, a move beyond the local high at $0.736 would mean that a rally to $0.89 is more likely.
The trading volume over the past three days, when Cardano bounced from the $0.61-support level, was well below average. This would need to change quickly for the bounce to continue. If it does not, traders can treat it as a warning sign of a short-term reversal.
The rising RSI underlined weakening downward momentum. Hence, in the coming days, traders can expect a bounce beyond the $0.73-resistance zone.
A retest of this level as support would present a buying opportunity, with invalidation being a drop below $0.61.
Putting the weekly and daily price action together, a rally to $1 by the end of 2025 is likely for Cardano. This would require sentiment to shift bullishly in October. And, key support levels at $0.61 and $0.51 to be defended.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion