ADA changes hands at $1.15, trading just above the upper boundary of a descending parallel channel
Cardano’s price has risen 1.78% against the US dollar over the past 24 hours. The fifth-ranked cryptocurrency has recovered after several difficult days in which bears pushed the price down to $1.00, and is now trading higher.
Technically, the picture suggests bulls may be building momentum for a new rally toward a significant supply wall near $1.20. If buyers increase their activity above $1.20, ADA could realistically target $1.35.
On the other hand, ADA/USD could be vulnerable to another bearish move toward $1.00 if sellers gain strength below the 100-period simple moving average (SMA).
Cardano price outlook
Last week Cardano experienced a sharp decline, dropping to a low of $1.06 after being rejected near $1.35.
The cryptocurrency has bounced from those lows and appears poised to extend upward, although it currently faces significant resistance around $1.20.
At the time of writing, the ADA/USD pair has moved above the 0.236 Fibonacci retracement level of the drop from $1.34 to $1.06, which produced an initial resistance near $1.13. That obstacle sits close to the upper boundary of a descending channel.
Bulls need to push beyond the channel limit to avoid a quick return to consolidation. A recent local high formed near $1.159, and holding above the 4-hour 100 SMA (about $1.16) would increase the likelihood of further gains. This area also intersects a horizontal resistance line that capped price action multiple times last week.
A decisive break above that line would allow bulls to press toward $1.20, which corresponds with the 0.5 Fib level of the move from $1.34 to $1.06. Above that zone, the 0.618 Fib retracement level presents the next resistance near $1.23.
If buyers sustain momentum, higher tests of $1.28 and $1.35 are possible.
Conversely, ADA/USD could pull back and rely on initial support at $1.13. Further losses would force bulls to defend the $1.10 area, while the recent lows at $1.06 provide a meaningful support zone.
If the MACD fails to turn positive and the 4-hour RSI drops below 50, ADA/USD could slip under $1.00. In that scenario, sellers would likely target the $0.90 support level.