Cardano (ADA) has faced significant challenges in surpassing the key resistance at the 20-day moving average (MA), even though Bitcoin has experienced a recent rebound. After a recovery from the $2 support level (the 0.618 Fibonacci retracement), ADA briefly surged above the 20-day MA, reaching up to $2.36, which corresponds to the bearish 0.382 Fibonacci level. However, Cardano was unable to close above this mark, indicating that resistance continues to hold firm.
Over the weekend, ADA struggled to maintain upward momentum above the 20-day MA, trading below this level as the bulls made an effort to regain dominance. A decisive close above this resistance would likely suggest that ADA is poised to challenge the highs seen in September.
Looking forward, ADA’s first major resistance is at the 20-day MA, near $2.22. Following this, the next resistance levels are at $2.36 (bearish 0.382 Fibonacci), $2.50 (bearish 0.5 Fibonacci and 50-day MA), and $2.65 (bearish 0.618 Fibonacci).
On the support side, the first key support level is at $2.20, followed by $2.00 (0.618 Fibonacci), $1.95 (100-day MA), $1.88 (downside 1.414 Fibonacci extension), and $1.80.
The RSI on the daily chart is consolidating below the neutral 50 line, suggesting that bearish pressure is waning and that a shift in market sentiment could be imminent.
In the ADA/BTC market, Cardano has struggled to maintain its footing at the key 4700 SAT level (0.5 Fibonacci), slipping further below this point as well as the 100-day MA. ADA has been moving within a descending price channel since encountering resistance at 6000 SAT in early September. Cardano initially found support at 4800 SAT but failed to maintain this level during the weekend.
The lower boundary of the descending price channel still provides support, but ADA will need to stabilize in order to reverse the current downtrend.
Looking ahead, the primary support lies at 4350 SAT (0.618 Fibonacci), followed by 4220 SAT (downside 1.272 Fibonacci extension and the lower boundary of the price channel), 4000 SAT, and 3825 SAT (200-day MA).
On the resistance front, the first notable resistance is at 4500 SAT, followed by 4700 SAT, 5000 SAT, and 5300 SAT (50-day MA).
