Cardano (ADA) Rises 4% as Buyers Test $0.65 Support

Cardano (ADA) has been on a steady upward trajectory for the third consecutive day, with its price increasing by 4%. The hourly chart indicates that the price of ADA is returning to the local support level of $0.6527. If buyers fail to take control, the price may soon test the $0.65 zone. On a larger time frame, the price of ADA is still within the range of yesterday's trading, suggesting that neither buyers nor sellers have accumulated enough momentum. If the situation remains unchanged by tomorrow, sideways trading between $0.65 and $0.67 is the more likely scenario. The weekly chart shows a similar picture, with trading volume continuing to decline, confirming the lack of energy from both buyers and sellers. This suggests that traders are unlikely to see sharp price movements in the near future. At the time of writing, ADA is trading at $0.6554.

Cardano (ADA) is currently trading around $0.656, facing a critical juncture as it struggles to gain traction after multiple rejections from key resistance levels. The consolidation near $0.635 is pivotal, with a breakout potentially fueling a strong rally and a breakdown triggering a steep decline. Analysts are closely monitoring the situation, with differing views on the token's near-term prospects.

Dan Gambardello, a market analyst, sees a bullish fractal repeating from the last cycle, suggesting that ADA's current chart pattern mirrors previous significant gains. He views Cardano as a "blue-chip contender," expecting it to overcome recent challenges and surprise critics. Gambardello believes that Cardano is primed for an all-time high and beyond, drawing parallels to the last cycle's performance.

However, other analysts are more cautious. Ali Martinez highlights the 0.5 Fibonacci retracement level around $0.6347 as critical support. He warns that a daily close below this level could signal significant weakness, potentially driving ADA down towards the 0.618 Fib level at $0.5331. This would continue the bearish trend from the $1.3290 peak.

Jonathan Carter notes that ADA is trading within a broadening wedge pattern since December 2024, a formation often preceding increased volatility. Carter suggests that failure to hold current support levels could lead to a 10% drop, testing $0.59. However, if buyers defend $0.59, he sees potential for a rebound targeting the $1 mark.

The differing analyst perspectives underscore a pivotal moment for ADA heading into the weekend. The token's immediate challenge is overcoming resistance levels while holding above critical support identified by analysts near $0.6347 and $0.59 to avoid further downside towards $0.53. The market sentiment remains mixed, with some seeing a dip-buying opportunity while others fear more downside. The outcome will depend on whether ADA can break through key resistance levels or if it succumbs to bearish pressure and tests lower support levels.