Eseandre Mordi
After a sharp correction earlier this month, Cardano (ADA) is showing early signs of stabilization. The market's attention is now turning to whether the coin can sustain a recovery above the 50-period moving average (50MA)—a level that has acted as a persistent ceiling for weeks. This observation reflects a cautious optimism forming among traders who see ADA attempting to regain its footing after testing lower support zones.
Chart Analysis: Price Challenges the 50MA Barrier
In a recent update, trader Sssebi pointed out that "ADA is trying to break the 50MA on the 4-hour chart. If the current candle closes above in green, we could see a small pump, possibly retesting the $0.74 area." The 4-hour Binance ADA/USD chart confirms that ADA is currently trading near $0.673, testing the 50MA resistance around the same level.
Key technical levels:
- Current Price: $0.673
- Immediate Resistance: $0.74 (previous rejection level)
- Local Support: $0.62
- Major Support Zone: $0.55
The moving average has consistently capped upside momentum since early October, and ADA's current approach to this level signals a possible trend shift. The RSI indicator at the bottom of the chart shows a moderate uptrend from oversold conditions, suggesting improving buying pressure, though not yet strong enough to confirm a bullish reversal. A successful 4-hour close above $0.67–$0.68 could trigger a short-term wave toward the $0.74–$0.75 resistance band. However, failure to maintain this level might bring the price back toward $0.62, where previous consolidation occurred.
Market Context and Outlook
Cardano's price movement is in line with a broader crypto market recovery, where altcoins are slowly regaining ground as Bitcoin stabilizes above key support levels. The recent rise in RSI and short-term volume upticks suggests traders are gradually reentering the market. Still, ADA's medium-term structure remains under pressure until the coin can post a decisive close above its 50MA and confirm a higher low formation.
The path ahead for Cardano depends heavily on whether buyers can sustain momentum above the moving average. A successful close above $0.68 would likely invite renewed interest and push the coin toward $0.74, where sellers previously defended. Conversely, another rejection at this level would likely extend ADA's sideways phase, with potential retests near $0.60–$0.62 before any sustainable trend can form. Traders should monitor volume confirmations and candle closes on the 4-hour chart—the signals that often precede short-term trend reversa
Eseandre Mordi
