Cardano (ADA) is trading near $0.80, down 2.77%-3.73% over 24 hours, following a significant 15.7% surge triggered by Grayscale's spot ADA ETF application filing on July 22nd. This pullback represents profit-taking after ADA reclaimed the $0.85 resistance for the first time in months and posted a 37% gain throughout July, fundamentally shifting its technical structure. Key support is holding firm between $0.74-$0.75, aligning with the 26-period EMA and the 20-day Simple Moving Average (SMA).
Technical indicators show mixed but leaning bullish signals. The RSI at 60.13 indicates neutral conditions, allowing room for further upside. The MACD configuration (main line at 0.0570 above signal line at 0.0542, positive histogram at 0.0028) confirms sustained buying pressure. Trading volume remains elevated at $242.2 million on Binance spot markets, signaling continued institutional and retail interest post-ETF news.
Critical resistance lies at $0.94, the upper Bollinger Band boundary and a major psychological barrier where ADA faced rejection earlier this week. A decisive break above this level could propel ADA towards $1.00. Conversely, failure to hold the $0.74 support risks a deeper correction towards the 50-day SMA at $0.66, potentially invalidating the recent breakout. Long-term charts provide optimism: ADA bounced off its critical 50-month moving average, a historical accumulation zone, and is exhibiting a repeating falling wedge pattern that previously preceded significant rallies. Analysts like Javon Marks note this pattern's breakout potential, projecting targets between $0.88 and $1.00 if support above $0.75 holds.