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Cardano (ADA) is currently trading above the $1 mark and has drifted into the green zone at the time of writing. Up by more than six percent, ADA is now eyeing levels above $1.50. The general market sentiment has also turned green, with Bitcoin trading above the $96k levels. Apart from ADA, XRP has also rallied, up by more than ten percent. Here’s an ADA price breakdown by analyst Josh of Crypto World:
Current Resistance Zone:
Cardano’s price remains below a significant resistance range, located between $1.13 and $1.23. This area has previously caused a rejection, and until a breakout occurs above this zone, it’s expected to continue acting as strong resistance.
Potential Breakout and Price Target:
If Cardano breaks above the $1.23 mark, the next major resistance level sits at around $1.76, based on Fibonacci analysis. A confirmed breakout could lead to a price surge, with $1.76 being the next major target.
Support Levels:
On the downside, Cardano has several support levels to monitor. The first key support is the 50% retracement level around $0.83 to $0.84. Additional short-term support levels are at $0.98 to $0.99 and further down at $0.94. If the price dips below these levels, support around $0.88 to $0.90 could hold.
Inverse Head and Shoulders Pattern Formation:
An inverse head and shoulders pattern may be forming, but it’s not yet confirmed. For confirmation, Cardano’s price would need to break above the neckline around $1.13. If this happens, the short-term price target could be $1.20, suggesting a potential 16% upside move.
Warning on Resistance:
Even if the breakout occurs, Cardano would still face resistance at the key $1.23 area, so traders should remain cautious.