Two Key Levels in Play

Tech

Two Key Levels in Play

Cardano (ADA), the ninth-largest cryptocurrency by market capitalization, is currently at a crossroads, locked between two crucial price levels that could define its next move. ADA is now trading between its 50-day simple moving average (SMA) of $0.677 and its 200-day SMA of $0.762, resulting in a narrow battleground for bulls and bears.

The 50-day SMA may serve as intermediate support in the short term, providing a cushion against further downside pressure. On the other hand, the 200-day SMA may serve as a short-term barrier that Cardano must overcome to kickstart a fresh bullish uptrend.

Cardanos current tight range signals an ongoing battle between the bulls and the bears. A decisive break above the 200-day SMA could open the door for a stronger rally, potentially setting the stage for a sustained uptrend. Failure to stay above the 50-day SMA, on the other hand, could lead to additional selling pressure. The next few sessions could be key in determining where Cardano trends next.

Whats next？

At the time of writing, Cardano was up 0.34% in the last 24 hours to $0.722 and 15% up weekly. Cardano closed above the 50-day SMA at $0.677 on April 23. This is significant, as the daily SMA 50 has largely capped ADA price since December 2024, and a move above it could indicate that the bears are losing control.

Related

In the coming sessions, eyes will be on whether Cardano can convincingly hold above this key level and flip it into support. If this is achieved, Cardano will face its next resistance at the daily SMA 200 at $0.762. If breached, Cardano might aim for the $1 level next.

On the contrary, a decline below the daily SMA 50 would target support at $0.594 ahead of $0.552. Cardanos price trend might mirror Bitcoin in the short term, so this would be watched.

According to Santiment, Bitcoins unexpected breakout has flipped the script for the crypto community. Santiment noted that data shows a surge in optimism from the crowd as BTC rebounded above $95,000 for the first time since February. In light of this, traders could expect a flat-performing crypto weekend or mild retrace as signals to retail traders who may want to take profit.