Cardano (ADA) has recently demonstrated impressive strength, bouncing back with a remarkable 46% recovery from its December lows. On January 3, 2025, ADA climbed to $1.11, showcasing a significant turnaround from its earlier struggles at $0.76. As of now, Cardano is trading around $1.089, but it faces a notable resistance at $1.11.
This upward movement isn’t just a stroke of luck. Technical analysis paints an optimistic picture, indicating that Cardano is in an uptrend, supported by its rising moving averages. For many traders and investors watching this space, the key resistance levels to observe are $1.11 and $1.32. If ADA can break through these barriers, it could potentially reach its previous high of $2.33.
The recovery gathered momentum on December 20, 2024, as buyers entered the market and established a solid base at $0.76. Since then, Cardano has been on an impressive journey, consistently breaking through various technical resistance levels. The active participation of buyers is evident, especially as they’ve managed to push the price above both short-term and long-term moving averages. This is crucial, as moving averages often signal market sentiment to traders.
Currently, the 21-day Simple Moving Average (SMA) plays a pivotal role in supporting Cardano’s price. This indicator has become a reliable beacon during recent upward movements and underpins the ongoing bullish attitude.
Traders are now keeping a vigilant eye on the $1.11 price level, which has acted as a significant resistance in previous attempts. After failing once at this threshold on January 3, the market has entered a consolidation phase, prompting a closer look at where the price might head next.
Above the current price, there are clear resistance levels set at $1.20, $1.30, and $1.40. These could become points of intensified selling pressure as Cardano seeks to advance its price further.
On the flip side, strong buying interest is evident at $0.90, $0.80, and $0.70, serving as potential bounce-back points should a pullback occur. A look at the 4-hour chart analysis reveals that Cardano has kept a positive stance above the 21-day SMA, hinting at solid short-term momentum. However, if it were to fall beneath this average, a deeper correction could be on the horizon.
When examining the daily timeframe, the movement of the moving average lines now reveals an upward trend, providing evidence of a favorable market structure. This further supports the potential for ongoing upward movement, pending a breach of the key resistance levels.
The next challenge for Cardano is the $1.32 resistance level. Successfully overcoming this hurdle could set the stage for reaching back toward the previous high of $2.33, although that feat would require ongoing strong buying interest and positive market sentiment.
Finally, trading volume trends show consistent participation from market players, with a notable uptick during crucial breakout attempts. This volume activity lends credibility to the recent price movements.
Currently, Cardano continues trading between the established support at $0.90 and the key resistance at $1.11. This dynamic reveals a compelling confrontation between buyers eager to push prices higher and sellers looking to cash in. With Cardano’s recent resilience and notable recovery from its December lows, market participants are left eagerly anticipating what’s next in the asset’s journey.
