Cardano Price Shows Early Bullish Signs But Faces Heavy Resistance Walls

Source: CryptoNewsNet Original Title: Cardano price shows early bullish signs but faces heavy resistance walls Original Link:

Technical Analysis Overview

Cardano’s price action entered a stabilization phase on the daily chart following a period of sharp volatility. The cryptocurrency’s recent closes reflected attempts to maintain position above short-term support levels, with the Relative Strength Index (RSI) rebounding from oversold territory into the low-40s range, indicating a reduction in selling pressure that characterized recent trading sessions.

Key Technical Indicators

RSI and Moving Averages

The Relative Strength Index has rebounded from oversold conditions into the low 40s, while the 9-day Exponential Moving Average (EMA) begins to curve upward. The 20-day EMA continues trending lower, with the narrowing gap between these two averages typically preceding significant price movements according to technical analysis patterns.

MACD Momentum Signals

The Moving Average Convergence Divergence (MACD) indicator displays positive histogram expansion across multiple sessions. Both the MACD and signal lines remain below zero, reflecting the broader downtrend, though the increasing distance between histogram bars and the zero line suggests growing bullish momentum attempts.

Price Structure and Liquidity Analysis

Cardano’s (ADA) price structure remains confined between established support and resistance levels. The token maintains stability above its nearest key support level during recent sell-offs, with multiple resistance zones marking areas of previous selling activity.

Liquidity data reveals several significant bid and ask walls. On the bid side, substantial defensive walls sit below current price levels, representing significant token volume. On the ask side, multiple stacked liquidity clusters present obstacles to upward price movement, with the largest ask wall positioned as a critical threshold for potential acceleration.

Trading Scenarios and Outlook

Technical analysts note potential trading scenarios based on current indicators:

• Bullish Case: A retest of key support zones paired with stabilizing momentum could signal rebound opportunities
• Bearish Case: Failure to break through immediate ask-side liquidity or repeated rejections at resistance levels might indicate continued downward pressure
• Breakdown Risk: A breakdown below key support would expose the token to deeper support levels aligned with major bid walls

The broader trend remains under bearish control despite early stabilization signs. Price action remains capped under major resistance and exposed to downside liquidity risks. EMA compression and MACD progression are identified as key indicators for determining whether stabilization evolves into trend reversal or renewed selling pressure.

Cardano, a proof-of-stake blockchain platform, continues to experience price fluctuations alongside broader cryptocurrency market movements.