Peter Smith
Cardano (ADA) is testing a make-or-break technical level that could shape its direction through the rest of 2025. After drifting sideways for weeks, the token found footing at its 50-week moving average - a line that typically separates bullish momentum from bearish pressure. How ADA reacts here might determine whether it climbs back toward $1 or slides further down.
ADA Bounces at a Key Level
This week, ADA settled at $0.803, printing a candle with a long lower wick right at the 50-week moving average around $0.785. Trader Sssebi noted this could mark the start of a recovery move. But there's no guarantee - if the price slips below this support, the drop could accelerate.
The support zone sits between $0.78 and $0.80, anchored by the 50-week MA. Above that, resistance appears at $0.90, with the $1.00 psychological level looming beyond. The RSI is parked at 51, showing neither buyers nor sellers are dominating right now. ADA continues to chop between $0.70 and $0.90, caught in a range that reflects market indecision. This setup shows bulls trying to defend the moving average while bears push to break it down.
Market Drivers
Cardano's price action mirrors the broader altcoin market, which has been stuck in neutral as Bitcoin lacks clear direction. Long-term optimism around ADA comes from its expanding DeFi ecosystem and recent upgrades to the network. That said, trading volumes haven't matched earlier peaks, suggesting buyers aren't rushing in with conviction just yet.
What's Next
The coming weeks will be telling. A sustained close above $0.80 could set ADA up for a run toward $0.90 and potentially $1.00. On the flip side, losing the 50-week MA support would likely send the price down to retest $0.70. Right now, ADA's holding at a critical spot, but it'll take stronger buying pressure to confirm any real upside momentum.
Peter Smith
