Cardano Reclaims 50-Day Moving Average
Over the past few months, ADA has traded between $0.65 and $0.85. Although the token briefly dipped below this zone in June, a strong pump in July propelled it to a four-month high of $0.93. However, since that peak, Cardano has struggled to break out of its descending resistance channel.
Market analyst Sebastian noted that the more frequently ADA tests the $0.76 resistance, the higher the chance of a breakout. He emphasized the importance of reclaiming the 50-day Moving Average (MA), which has acted as both a major resistance and support level. Cardano has now successfully reclaimed this technical indicator, positioning itself for a possible move higher.
What’s Next for ADA?
If ADA closes above the $0.76 level, analysts believe the next price targets are $0.79 and $0.80. A confirmed breakout above $0.80 could signal a strong trend reversal and reignite investor optimism.
On the flip side, rejection at this level could drag Cardano back toward its local lows, threatening the current bullish structure.
85% to 120% Rally on the Horizon?
Crypto analyst “Man of Bitcoin” pointed out that ADA appears to be forming a potential wave-1 and wave-2 Elliott Wave setup. He believes that as long as the price stays above the $0.685 support, a wave-5 rally could be next, signaling further upside.
Ali Martinez, another prominent market watcher, noted that Cardano has been trading within a descending channel since its December 2024 high of $1.32. He suggested that breaking past $0.84 could open the door for a rally toward $1.30.
“ADA is showing the same price structure as the last cycle,” Martinez explained, “only this time it’s unfolding more gradually. And it feels like we’re right at the beginning of an explosive move.”
Crypto Bullet echoed this sentiment, suggesting that Cardano’s long-term breakout from its eight-month downtrend could be setting up a run toward $1.60 — a move that would represent a 120% gain from current levels.
As of writing, ADA is trading at $0.74, up 3% in the last 24 hours.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
