Cardano (ADA) finds itself at a key technical moment, where it grapples with a prolonged resistance zone that has largely defined its market behavior since December 2024.
Priced near $0.6811 at press time (early April 2), ADA has seen an 11.03% decline over the past seven days, despite a small 0.44% gain in the last 24 hours.
Its market cap stands near $24.5 billion with recent daily trading volume exceeding $620 million.
Cardano’s price action over the past few months showed a pattern involving failed breakout attempts and subsequent pullbacks near significant overhead price levels.
According to Dan Gambardello, a known crypto analyst, ADA’s current position is at a critical technical juncture.
The resistance level he identifies between $0.72 and $1.24 is proving to be a major barrier for bulls currently.
Gambardello suggests that once ADA manages to break decisively above the $0.72 mark, the path toward the $1.24 upper target becomes much clearer technically.
Such a move could signal the beginning of a new sustained bull market phase for Cardano.
However, the price remains in consolidation mode below resistance until such a decisive breakout actually occurs.
Moreover, Cardano’s support structure is holding steady for now, with both the 100 EMA (blue) and 200 EMA (light blue) acting as key areas of price stability.
These moving averages have proven to be reliable support levels during this consolidation phase.
The most recent daily price candle shows a slight bullish reversal attempt initiating from support levels.
However, traders likely need confirmation of a clear breakout above the $0.72 resistance area for the rally to gain significant upward momentum.
Despite some tentatively positive chart signs like holding EMA support, Cardano’s price action remains under pressure.
This appears partly due to significant recent selling activity observed on the blockchain.
On-chain data from Santiment, highlighted earlier by analyst Ali Martinez, revealed whales recently sold off approximately 200 million ADA tokens.
This large selling volume has likely been a key factor preventing a stronger price recovery for ADA so far.
Historical data often suggests such large whale transaction flows can trigger further downward price momentum, unless strong new buying pressure quickly emerges to absorb the selling effect.
Currently, Cardano’s price hovers near the $0.68 mark. Importantly, it holds above the crucial $0.60 longer-term support level also watched by Martinez.
If ADA fails to reclaim the $0.70 to $0.80 range relatively soon, Martinez previously warned it could potentially see a sharp decline, possibly falling toward his identified $0.31 technical downside target.
However, ADA’s current resilience above the $0.60 support level suggests a price recovery remains technically possible, provided significant buying interest returns to the market soon.
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