Cardano Bulls Defend Key Support—Can ADA Break Past $1.20?

NAIROBI (CoinChapter.com)—Cardano (ADA) traders are closely watching key support levels as open interest in futures positions climbs to 1.09 billion ADA.

According to Coinglass data, long positions at $0.804 and $0.84 amount to $9.11 million, while shorts total $5.45 million. This imbalance favors sellers, increasing the probability of further downside unless buying pressure strengthens. However, higher open interest suggests rising liquidity, potentially amplifying volatility in ADA’s next move.

Can ADA Sustain Support Above $0.80?

Cardano (ADA) is still navigating key technical levels. The 50-day and 200-day EMA are currently positioned at $0.8072 and $0.7376, respectively. Right now, the price sits just above the 200-day EMA, an important level that often dictates broader trends.

The Relative Strength Index (RSI) has climbed to 50.48, slightly up from yesterday’s 50.39. This suggests that bullish momentum is slowly building, but not enough to confirm an uptrend yet. A move above 55 on the RSI could signal a stronger shift in sentiment.

Crypto trader Crypto Rand highlighted the $0.65 support level as a key defensive zone, stating, “$ADA continues defending the 65 cents range. Really important support.” A breakdown below this level could accelerate selling pressure, while a bounce might trigger a short-term recovery.

The Relative Strength Index (RSI) sits at 50.39, suggesting neutral momentum. However, a dip below 50 could reinforce bearish sentiment.

Bulls Eye $1.20 Breakout as Historical Patterns Emerge

Despite short-term bearish sentiment, ADA has historically consolidated before major price surges. Analyst Ali Martinez pointed out that ADA’s long-term structure remains valid as long as the price holds above $0.80.

Source: Ali Martinez, X

“ADA has a history of long consolidation periods before strong rallies. Breaking above $1.20 could shift the trend,” Martinez stated. The $1.20 level serves as a key resistance zone, aligning with prior market cycles where ADA struggled before making upward moves.

A sustained move above $0.85–$0.90 could pave the way for a push toward $1.20. However, failure to reclaim these levels may leave ADA vulnerable to continued downside pressure.

Derivatives Data Signals Caution Amid Bearish Bias

Open interest has increased by 2.16% to $771.55 million, while total volume dropped 10.37% to $1.62 billion. Options volume, however, plunged 92.94% to $6.59K, suggesting a decline in speculative bets.

Source: Coinglass

If the asset holds above $0.80 and attracts enough buying pressure, a breakout toward $1.20 could materialize. However, failure to reclaim key resistance levels may see Cardano retest lower supports.