ADA Bulls Eye 10% Rally if Resistance Walls Are Cleared
Cardano (ADA) has spent the last few sessions consolidating just below critical resistance levels, with technical indicators offering a mixed outlook for the days ahead.
The market is currently balancing between fading bearish pressure and potential recovery momentum, with both order book data and chart structure pointing to decisive levels that traders should watch closely.
ADA Technical Indicator Outlook
ADA’s price action has been hovering below its short- and mid-term exponential moving averages, signaling that bullish momentum has yet to reclaim control.
Daily chart for ADA/USD (Source: GeckoTerminal)
The relative strength index (RSI) has stabilized in the mid-40s, reflecting neither oversold nor overbought conditions but rather a market in search of direction. Meanwhile, the MACD line remains below its signal line, highlighting that bearish forces are still in play, though the histogram suggests the downside pressure is gradually losing intensity.
Overall, the indicators suggest ADA is in a cooling phase, with sellers no longer as aggressive but buyers not yet strong enough to establish dominance.
Key Levels to Watch
Resistance remains firm at $0.8406, with further ceilings ahead at $0.9034 and $0.9609. On the downside, ADA has support levels at $0.7541, $0.7425, and a deeper cushion near $0.7014.
The order book adds nuance to those chart levels. A heavy ask wall at $0.8444 could slow upside progress, while an even larger ask wall at $0.8600 would need to be absorbed before ADA could rally toward the $0.9034 resistance.
If that wall clears, the price could gain more than 5% quickly. Beyond that, a major liquidity cluster at $0.9000 represents another hurdle, which if broken could unleash a double-digit surge toward higher resistance levels.
On the support side, ADA is backed by notable bid walls at $0.7900 and $0.7800. A loss of these cushions could accelerate downside momentum, with the largest and most critical wall at $0.7500, where over 1.2 million ADA sits. Should this level fail, ADA could see a steep decline approaching 8%.
Trading Strategies and Potential Entries
For bulls, an entry above $0.8444–$0.8600 would represent a cleaner breakout signal, with upside potential toward $0.9034 as the first major profit-taking zone. A more aggressive long entry could be considered near $0.7800–$0.7900, betting that the bid walls there will continue to hold.
For bears, short positions look more attractive on failed rallies into $0.8400–$0.8600, particularly if the ask walls prove too difficult to clear. Downside exits could be placed near the $0.7541 support zone, with extended targets closer to $0.7425 or even $0.7014 if momentum builds.
At this stage, ADA is positioned for a decisive move. Traders should watch for whether buyers can overwhelm the ask walls or whether sellers take advantage of weakened momentum to push the token lower.
Disclaimer: The information presented in this article is for informational and educational purposes only. It does not constitute financial advice. Ecoinimist is not responsible for any losses incurred. Readers should exercise caution before acting on this content.
