TLDR
- Cardano (ADA) broke through the key moving averages to reach $1.11 on January 3, 2025 after recovering from the December low of $0.76
- The current trading price is $1.089 with price action showing resistance at the $1.11 level
- Technical analysis indicates an uptrend with moving average lines sloping upwards
- Key resistance levels lie at $1.11 and $1.32. If there is a break, there is a possibility of reaching the previous high of $2.33
- The short-term outlook suggests sideways movement unless the price breaks above $1.11 or falls below the moving averages
Cardano (ADA) has shown renewed strength in early January 2025, reaching $1.11 on January 3 after a sustained recovery from December lows. The digital asset, currently trading at $1,089, has maintained its position above the key moving averages, indicating continued bullish momentum.
The recovery began on December 20, 2024, when buyers entered at the $0.76 price level, forming what appeared to be a local bottom. Since then, the cryptocurrency has shown a steady upward movement and has broken through several technical resistance levels.
Market data suggests that buyers have remained active in the market, pushing the price above both the short-term and long-term moving averages. This technical achievement marks an important milestone for Cardano’s price performance, as these moving averages often serve as key indicators for market participants.
The current price structure shows clear support from the 21-day Simple Moving Average (SMA) on the 4-hour time frame. This technical indicator has proven reliable during the recent bullish move, providing a foundation for further price increases.
Traders and investors are closely watching the $1.11 price level, which has emerged as a crucial resistance point. This level has already rejected the price once when attempted on January 3rd, leading to the current consolidation phase.
Above the current trading range, the market has established clear resistance levels at $1.20, $1.30, and $1.40. These price points represent potential areas where selling pressure could intensify as the asset attempts to continue its upward trend.
On the support side, the market structure shows strong buying interest at $0.90, $0.80, and $0.70. These levels coincide with previous areas of price reaction and could serve as jumping points if a retracement occurs.
This is shown by the 4-hour chart analysis CardanoThe price action has maintained its position above the 21-day SMA, indicating healthy short-term momentum. However, traders should note that a break below this moving average could trigger a deeper price correction.
Looking at the daily time frame, the moving average lines have shifted into an uptrend, providing additional confirmation of the broader bullish market structure. This technical bias favors further upward movement until key resistance levels are broken.
The next major hurdle for Cardano lies at the $1.32 resistance level. A successful breakout of this price point could pave the way to the previous high of $2.33, although such a move would require sustained buying pressure and favorable market conditions.
Trading volume patterns indicate steady participation from market participants, with increased activity observed during key breakout attempts. This volume profile supports the validity of recent price movements.
The market reaction to the $1.11 resistance level has forced the asset into a period of consolidation. This phase typically ends with either a breakout above resistance or a retracement to test lower support levels.
For the uptrend to continue, buyers will need to demonstrate enough strength to break the $1.11 level. Otherwise, there could be a prolonged sideways move or a possible retest of lower support levels.
Current price data shows Cardano trading at $1,089, maintaining its position above the key moving averages as market participants await the next decisive move. The asset continues to show resilience from December lows, suggesting that underlying buying interest remains intact.
Cardano’s price action is between the established support at $0.90 and resistance at $1.11, indicating a clear battle between buyers and sellers at these crucial levels.
