Cardano (ADA) Pullback at $0.91 After Triangle Breakout – Resistance Test in Focus

Quick Take

• ADA currently trading at $0.91 (-3.40% in 24h)
• Cardano’s RSI at 64.87 shows neutral momentum after recent breakout
• Multi-month triangle breakout on August 14 drove 10.45% surge before current pullback

What’s Driving Cardano Price Today?

The ADA price action reflects a natural pullback following Tuesday’s explosive 10.45% rally that broke Cardano out of a multi-month triangle formation. Yesterday’s breakout pushed ADA toward the $1.0136 Fibonacci target level, but today’s -3.40% decline suggests profit-taking as traders reassess the next move.

The recent regulatory clarity from SEC Chair Paul Atkins regarding Project Crypto has provided a supportive backdrop for the broader crypto market. His announcement that certain staking activities don’t classify cryptocurrencies as securities particularly benefits proof-of-stake networks like Cardano, though this positive news appears already priced into recent gains.

Last week’s momentum that saw Cardano climb to $0.80 and approach the $0.92 resistance level has now evolved into a test of higher resistance zones. The current ADA price of $0.91 sits just below the critical $0.92 level that has been closely watched by traders.

ADA Technical Analysis: Mixed Signals After Breakout

Cardano technical analysis reveals a complex picture following the recent triangle breakout. The ADA RSI reading of 64.87 sits in neutral territory, neither overbought nor oversold, suggesting room for movement in either direction. This RSI level indicates the recent selling pressure hasn’t reached oversold conditions, leaving space for potential further declines.

The MACD histogram shows a positive 0.0155 reading, indicating bullish momentum for Cardano remains intact despite today’s pullback. Cardano’s MACD line at 0.0426 above the signal line at 0.0271 confirms the underlying trend structure remains supportive.

Cardano’s position within the Bollinger Bands tells an important story. With a %B position of 0.8989, ADA trades near the upper band resistance at $0.94. This proximity to the upper band often signals potential for either a breakout continuation or a reversion toward the middle band at $0.80.

The moving average structure strongly favors bulls, with ADA price trading above all key averages. Cardano’s current price sits well above the SMA 200 at $0.72, SMA 50 at $0.74, and shorter-term averages, confirming the very strong bullish trend classification.

Cardano Price Levels: Key Support and Resistance

Based on Binance spot market data, Cardano support levels show strong backing at $0.68 for immediate support, with stronger support at $0.54 aligning with the 52-week low. These levels represent significant buying zones should the current pullback extend.

On the upside, ADA resistance becomes critical at $1.02, which serves as both immediate and strong resistance. A break above this level could accelerate movement toward the previously mentioned $1.0136 Fibonacci target. The 52-week high at $1.19 represents the ultimate resistance for any extended rally.

The current pivot point at $0.93 sits just above today’s trading range, making it a key level to watch for directional clues. Trading above this pivot suggests continued bullish pressure, while a break below could signal deeper retracement.

Should You Buy ADA Now? Risk-Reward Analysis

For aggressive traders, the current ADA price offers an interesting risk-reward setup. The recent triangle breakout validates the bullish thesis, but the pullback provides a potentially better entry than chasing Tuesday’s breakout. Risk management should focus on the $0.68 support level, offering roughly 25% downside protection from current levels.

Conservative investors might wait for either a successful test of the $1.02 resistance or a deeper pullback to the $0.80 middle Bollinger Band. This approach reduces risk while maintaining upside exposure to Cardano’s technical breakout story.

Swing traders could consider the ADA/USDT pair attractive here, given the strong moving average support structure. The daily ATR of $0.06 suggests normal volatility conditions, neither extremely high nor low, providing reasonable trading conditions.

Position sizing becomes crucial given ADA’s 24-hour trading range between $0.98 and $0.90. This $0.08 range represents significant intraday volatility that traders must factor into their risk calculations.

Conclusion

Cardano’s current position at $0.91 represents a critical juncture following the multi-month triangle breakout. While today’s -3.40% decline might concern some traders, the technical structure remains bullish with strong moving average support and positive MACD momentum. The next 24-48 hours will likely determine whether ADA can reclaim the $0.92-$0.94 resistance zone or if further consolidation toward $0.80 support becomes necessary. Traders should watch for volume confirmation on any move above $1.02 resistance, as this level represents the gateway to higher Fibonacci targets.

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