Will New Partnerships Help Break the $0.80 Resistance?

TLDR

• Cardano price recently rallied to $0.865 before pulling back to test $0.775 support
• ADA is currently trading below $0.80 and the 100-hourly simple moving average
• Brave Wallet recently added ADA token support, improving real-world utility
• Charles Hoskinson hinted at multiple delayed partnerships coming after Midnight upgrade
• Technical analysis suggests possible $1.08 target based on inverted head and shoulders pattern

Cardano (ADA) is experiencing a correction phase after an impressive 19% rally last week, currently trading around $0.785. The third-generation blockchain’s native token reached a peak of $0.865 before falling back to test key support levels. This price action comes amid positive developments for the Cardano ecosystem and optimistic statements from founder Charles Hoskinson.

The recent pullback shows ADA losing 4% in daily trading but maintaining position above the crucial $0.75 support zone.

This price movement follows typical market behavior after a strong upward push, with profit-taking and consolidation occurring at resistance levels.

Technically, Cardano price broke above the $0.75 and $0.80 resistance levels during its recent climb before facing rejection at $0.865. The price has since retreated below the 100-hourly simple moving average.

Chart analysis reveals a potential inverted head and shoulders pattern with a neckline near $0.75. If this pattern plays out as expected, a post-retest reversal could target $1.08, calculated by adding the pattern’s depth to its neckline.

Community Developments Fuel Optimism

Recent ecosystem developments have kept the Cardano community positive despite the price correction.

Most notably, Brave Wallet officially integrated ADA token support, a move that enhances the real-world utility of Cardano’s native cryptocurrency.

This integration represents a practical step forward for Cardano adoption as Brave Browser continues to gain popularity among privacy-conscious web users.

Charles Hoskinson, Cardano’s founder, has also sparked excitement by hinting at multiple partnership deals that were originally planned for 2022 but delayed due to external factors.

“A certain entity dropped the ball, we got ignored,” Hoskinson explained about the previously delayed partnerships.

These deals are now expected to materialize following the Midnight upgrade, with announcements planned throughout Summer and Fall this year.

The technical indicators present a mixed picture for ADA’s short-term prospects. The hourly MACD is losing momentum in the bullish zone, while the RSI has dipped below the 50 level.

For bulls to regain control, Cardano needs to overcome resistance at $0.80, followed by $0.818. A successful break above $0.845 could trigger a stronger rally toward the $0.88 region and potentially the $0.90 mark.

On the downside, Cardano has tested the $0.775 support zone, with a recent low formed at $0.774. Should this level fail to hold, further support exists at $0.74, with a major support level at $0.68.

The 50-day and 200-day Exponential Moving Averages are showing signs of a potential golden crossover, which would be considered a bullish signal by many technical analysts.

According to trend-based Fibonacci levels, a bounce from the 23.6% Fibonacci level at $0.762 could lead to a move toward the 50% level at $1.08, with an intermediate hurdle at the 38.2% level near $0.92.

Conversely, failure to maintain the $0.75 support zone would invalidate the bullish pattern and could result in a deeper pullback to the 50-day EMA at $0.71.

The current price action occurs against a backdrop of increased optimism within the Cardano ecosystem, with the community looking forward to new partnerships and continued development progress.

For now, ADA traders and investors are closely watching the $0.75 support level, which appears to be the key battleground between bulls and bears in the near term.