Key Insights:
- Cardano is testing key support at $0.60, aligning with the 50% Fibonacci retracement level.
- A potential morning star pattern suggests a possible rally toward $0.73 resistance.
- A death crossover between 50- and 200-day EMAs could signal a major sell-off risk.
Cardano price is testing key support zones that draw market traders and analysts to evaluate its potential for breaking through critical resistances.
The upcoming rally may present the opportunity for the crypto to break through the $0.73 resistance as it advances toward $0.92.
Cardano is Testing Key Support at $0.60
Notably, Cardano (ADA) price is showing stability above $0.60 which marks the position of the 50% Fibonacci retracement level.
This support zone represents an essential price threshold from which ADA might start moving in an upward direction.
The use of Fibonacci retracement pattern analysis establishes this support level as a critical value because traders depend on it to define potential reversal areas.
Conversely, the lack of a strong support might trigger price declines which analysts monitor through potential downward movement.
If the price remains above $0.60 while overcoming surrounding resistance thresholds, it could indicate market recovery.
Potential Morning Star Pattern on the ADA Price Chart
More so, Cardano price recent chart has shown a morning star pattern development.
The morning star pattern suggests a potential price surge since it represents a bullish trend reversal signal.
The emerging pattern implies ADA price is approaching an upward price move, which may push it toward the $0.73 resistance zone.
This pattern occurs when a bearish candle appears first before a Doji or small candle, then followed by a bullish candle.
A breakthrough past $0.73 resistance would trigger a move to the 78.60% Fibonacci level which stands at $0.92.
The price point at this level functions as a critical barrier which might interfere with additional upward price movements.
However, the formation of the morning star pattern provides some optimism, as it indicates that buyers may be preparing to take control of the market.
A Death Crossover Between 50- and 200-Day EMAs
Nonetheless, the 50-day and 200-day exponential moving averages (EMAs) in Cardano price chart show a warning sign, a death crossover.
The crossover indicates a possible bearish trend if the 50-day EMA breaks below the 200-day EMA.
The start of a major Cardano price decline might begin when a death crossover appears between these timeframes.
A death crossover will trigger a negative signal which may cancel any potential price increase therefore extending bearish risks towards more market declines.
If the price breaks through the $0.60 support level it would create more substantial trading losses in this scenario.
Additionally, crypto analyst Ali Martinez pointed out that ADA’s recent price decline was significant because it broke a key support level.
The price data from mid-2022 until 2025 clearly shows Cardano maintaining its support between $0.70 and $0.80.
Multiple price tests in this particular area produced either price rebounds or pullbacks.
Ali Martinez has suggested that further downside risks could develop for Cardano because its price caves below this support zone.