Introduction to Cardano’s Current Price Challenges
Cardano (ADA) has recently experienced a significant dip, falling below the crucial $1 threshold. In the past 24 hours, ADA has seen a decline of over seven percent. This downturn highlights the challenges ADA faces at the pivotal resistance zone, often referred to as the “golden pocket.” This area, strategically positioned between $1.12 and $1.23, has become a central focus on the weekly chart as Cardano attempts to breach this formidable barrier.
Understanding the Golden Pocket Resistance
After ADA’s breakout past the 50% retracement level—around $0.82 to $0.83—market participants anticipated a price surge toward the golden pocket. However, as observed, resistance in this zone has proven robust. According to analyst Josh from Crypto World, this golden pocket is a crucial Fibonacci zone, often marking strong resistance. Consequently, ADA’s recent rejection from this region aligns with expectations, indicating continued resistance in the short term.
Should Cardano successfully break above this zone, the next target would be the 78.6% Fibonacci level, situated around $0.76, highlighting the strategic significance of overcoming this resistance.
Short-Term Price Action and Support Levels
In the short term, Cardano has experienced a pullback following its achievement of the flag pole price target, characteristic of a bullish continuation pattern. As the price undergoes correction, key support levels are becoming increasingly important. Currently, support is observed around $0.97. A dip below this level could see ADA find support at the 50% retracement, approximately $0.94.
Moreover, a short-term golden pocket support zone exists between $0.88 and $0.90. Should Cardano breach this golden pocket, subsequent support levels to watch are at $0.84 and between $0.76 and $0.77. These zones are critical as potential bounce areas, reminiscent of recent price actions.
Resistance Levels to Watch
On the upside, Cardano is likely to encounter resistance around $1.15 to $1.17. The most formidable resistance, however, remains the golden pocket zone on the weekly chart. Overcoming this area poses the main challenge for any bullish momentum, and a successful breakout above this zone could pave the way for further upward movement.
