Cardano (ADA) has reclaimed the spotlight in the crypto community after it gained 15% in the last week, hitting an all-time high since March 8. With prices having hit the $0.82 level—a level that in previous times was a psychological support—a level investors and traders are now wondering if ADA can hit the $1 threshold in May of 2025.
This rally is one of the larger crypto market rebounds and initial signs of an altcoin season. The technical setup behind ADA is indicative of a significant change in momentum and that the uptrend has just begun.
On the intraday timescale, Cardano has broken out of a long-term downtrend channel convincingly. Such a breakout, supported by solid bullish candlesticks and increasing trading volume, indicates a possible reversal from bearish to bullish ground.
Interestingly, the altcoin has moved above its major moving averages—20-day, 50-day, 100-day, and 200-day—all of which are currently in a bearish alignment. Such a crossover pattern is generally considered a very strong indication of an impending trend reversal.
Relative Strength Index (RSI) is at 69.90 and near the overbought region. While this indicates positive buying pressure, it also comes with the threat of short-term correction or consolidation.
The $0.82 is not only a psychological but also a technical resistance for the altcoin. Daily closes can be repeated at or above this mark, setting up ADA for the next extremely crucial levels at $0.90 and then $1.05. In the near term, prolonged moves on the higher side will tend to drive prices to around $1.20, as long as the condition of overall positive market sentiment prevails.
On the negative side, the initial support is at $0.75–$0.78, the former resistance of the falling channel. A successful test there would establish it as a new support. Major support is nearby at $0.70, serving as a cushion in the event of additional corrections.
If the altcoin continues to be in its bullish trend and keeps closing above $0.80 on the daily chart, a move towards the $1.00 psychological level is more likely. This level also coincides with earlier structural resistance, which is a key milestone for bulls to take back.
With mood in the market better and technicals also favouring it, ADA can even touch $1 in May 2025—if only it remains above $0.78 resistance-turned-support and overall altcoin strength is not lost.
Source: TradingView
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Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.
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