Cardano's native token, ADA, is demonstrating a strengthening bullish structure, with analysts pointing to key technical levels that could signal a continued recovery. The price is currently consolidating above the crucial $0.40 support level, a move that has restored near-term confidence after weeks of sideways movement.
Technical analysis reveals ADA has successfully defended the Ichimoku cloud support and established a higher low near $0.39, reinforcing a positive momentum bias. The token recently bounced from the 20-day moving average (MA) and subsequently broke above the 50-day MA, surging 9% to reach $0.425. It has since retraced slightly and is now consolidating near the 50-day MA, which sits at approximately $0.395.
Market analyst Nick Valdez (known as Deezy) believes the correction phase for ADA may be nearing its end, citing the formation of a higher low on the daily chart. The next major target for ADA is the 100-day moving average, currently positioned at $0.489. To reach this level, the token must first overcome a significant resistance zone around $0.43, a level that has previously triggered selling pressure.
While the short-term structure is improving, some cautionary signals persist. Data shows cooling open interest and spot outflows, suggesting that any rallies may face resistance ahead. The broader market sentiment remains mixed, making ADA's relative strength a notable factor. Analysts are closely watching whether ADA can maintain support at the 50-day MA and successfully break through the $0.43 barrier to initiate a potential push toward the 100-day MA target.
