Cardano (ADA) Price Analysis: Bulls Eye $0.96, But Downside Risks Remain

ADA is currently trading around the $0.86 mark and seems to be losing momentum on lower timeframes. As anticipated in our previous analysis, the price did break out of the falling channel on the daily timeframe but couldn’t continue the momentum as it faced rejection around $0.95. Right now, it seems like things could move in either direction for ADA in the short term. Let’s take a quick look at the latest price charts to see where Cardano could be headed in the coming days.

Key Takeaways

• ADA is losing momentum after failing to break above $0.96 resistance.
• Key support levels to watch are $0.84 and $0.77 in the short term.
• Bearish divergence on the 4H chart signals a likely correction ahead.

Analyzing the ADA Charts

If we take a look at the latest 4-hour charts for ADA, we can notice that the price tried to retest the resistance at $0.96 a few days ago but faced rejection just below it. The momentum seems to be fading, and the support level we are currently eyeing for ADA is the $0.84 mark.

We also have a slight bearish divergence on the 4-hour timeframe, which suggests that the price may need a correction in the short term. If this structure plays out and the price fails to hold the support at $0.84, the next level we will be watching for ADA is the $0.77 mark. Overall, it looks like ADA is losing steam on lower timeframes, which is why our immediate ADA price prediction is leaning bearish.

Switching to the 1-day timeframe, we can see that the falling channel we were monitoring previously did manage to break out but couldn’t get above the resistance at $0.94. Right now, the price is retesting the top of the channel again, and a bounce from here would be positive for the bulls as it could push for another retest of $0.94. However, if the price fails to bounce, ADA will retest $0.84 next, and the $0.77 level will also remain in play.

Final Takeaway: What is Next for Cardano (ADA)?

ADA is currently trading around the $0.86 mark and appears to be heading toward the support at $0.84. While last week’s breakout from the falling channel pattern showed some bullish momentum, the price failed to clear resistance at $0.96 and has since turned lower. A bounce from the top of the channel here, backed by volume, could set up another retest of $0.96. However, with bearish divergence on the 4-hour timeframe and declining momentum, a short-term correction for ADA remains likely.