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Cardano Bulls Defend Key Support—Can ADA Break Past $1.20?
As the cryptocurrency market continues to navigate uncertainty, Cardano (ADA) bulls have stepped up to defend key support levels. With open interest in futures positions reaching an all-time high of 1.09 billion ADA, investors are eager to see if ADA can break past $1.20.
Recent data suggests that long positions at $0.804 and $0.84 amount to $9.11 million, while shorts total $5.45 million. This imbalance favors sellers, significantly increasing the probability of further downside unless buying pressure strengthens. However, rising open interest may amplify volatility in ADA’s next move.
The 50-day and 200-day Exponential Moving Average (EMA) are currently situated at $0.8072 and $0.7376, respectively. Notably, the price has settled just above the 200-day EMA, a crucial level that often dictates broader trends.
In addition, the Relative Strength Index (RSI) has climbed to 50.48, indicating slowly growing bullish momentum. However, this uptick is not yet sufficient to confirm an uptrend. A move above 55 on the RSI could signal a stronger shift in sentiment.
Crypto trader Crypto Rand emphasized the importance of the $0.65 support level as a defensive zone, stating that “ADA continues defending the 65 cents range. Really important support.” Should the price decline below this level, it may lead to accelerated selling pressure, while a bounce might spark a short-term recovery.
Historically, ADA has been known for its long consolidation periods before experiencing significant price surges. Analyst Ali Martinez pointed out that as long as the price holds above $0.80, the long-term structure of ADA remains valid.
Interestingly, the $1.20 level serves as a key resistance zone, aligning with prior market cycles where ADA struggled before making upward moves. A sustained move above $0.85-$0.90 could pave the way for a push toward $1.20. However, failure to reclaim these levels may leave ADA vulnerable to continued downside pressure.
As open interest increases and derivatives data indicates caution amidst bearish bias, it remains uncertain whether Cardano will see a significant price surge or not.
