Cardano drops 7% as ADA consolidates below 1 dollar

Cardano (CRYPTO:ADA) experienced a 7% daily drop, falling below $1, as its recent bullish rally met resistance at the $1.3 level.

After reclaiming its yearly high of $0.8, ADA surged to the critical $1.3 resistance zone but failed to maintain its momentum, facing selling pressure at this key level.

On the weekly chart, Cardano's rally from the $0.3 support zone to $1.3 showcased strong buying activity.

However, the $1.3 resistance has proven difficult to overcome, leading to a possible retracement phase.

Analysts predict a pullback to the $0.8 support level, which could act as a springboard for a renewed rally toward the $2 resistance zone, signaling a potential long-term bullish continuation.

The 4-hour chart provides a closer look at ADA’s recent price movements, showing the formation of a head-and-shoulders pattern near the $1.3 resistance.

This bearish reversal pattern suggests that a confirmed breakout below the neckline could push ADA to retrace to the 0.5 ($0.82)–0.618 ($0.7) Fibonacci levels.

This consolidation phase is viewed as an opportunity for buyers to re-enter the market.

A rebound from these lower levels could help Cardano challenge the $1.3 resistance again, potentially setting the stage for a stronger upward trend.

Traders are closely watching the $0.8 support and $1.3 resistance zones as critical levels to determine ADA’s next price direction.

While the short-term outlook indicates potential retracement, long-term momentum remains intact, provided the asset holds key support levels and buying pressure resumes.

At the time of reporting, the price of Cardano (ADA) was $0.8925.