Cardano price rebounds from oversold conditions, testing $0.76 resistance. Low volume raises the risk of rejection back toward $0.49 support.
Summary
- Oversold bounce confirmed at $0.49 support.
- Strong resistance at $0.76 with low volume rally.
- Possible rejection leading to range formation between $0.49–$0.76.
Cardano (ADA) price has confirmed an oversold bounce after finding strong support around the $0.49 region during the recent capitulation event. While the rebound has lifted sentiment among traders, the recovery is now encountering a critical resistance zone around $0.76, a level reinforced by multiple technical confluences.
Renewed confidence in ADA’s next potential rally is can stem from the Hydra upgrade. The next move from this area will likely determine whether ADA continues higher or establishes a longer-term accumulation range.
Cardano (ADA) price key technical points
- Oversold Reversal: ADA rebounded from $0.49 support following an extended sell-off, confirming short-term relief.
- Major Resistance Zone: The $0.76 region aligns with an older order block, the Point of Control (POC), and structural resistance.
- Volume Profile: Current bounce is occurring on low volume, signaling caution for potential rejection.
The recent bounce in Cardano’s price structure comes after a strong downward leg that left the asset in deeply oversold territory. The recovery from $0.49, a key higher time frame support level, has reaffirmed buyers’ presence, but the move remains technically fragile. The rally’s low volume indicates limited participation, suggesting that the market may lack the momentum needed to break above nearby resistance zones.
At present, the $0.76 region stands as a decisive test. This level represents both an older order block and a Point of Control, areas where significant trading activity previously occurred. These overlapping technical factors form a zone of resistance where sellers may look to defend their positions.
If ADA fails to break through this region with convincing volume, a rejection and subsequent rotation toward $0.49 support become increasingly likely.
Should such a move unfold, it would likely fill the exposed wick left behind during the bounce, a common pattern in Cardano’s historical price behavior. From a structural perspective, this would set the stage for the development of a broader trading range between $0.49 and $0.76, allowing the market to establish an accumulation base before attempting another push higher.
The current setup highlights a classic recovery scenario where an oversold bounce meets structural resistance. For bullish continuation to remain valid, Cardano needs to reclaim and hold above $0.76 on daily closes, ideally accompanied by rising volume and increasing open interest. Failure to do so could lead to further range-bound trading, potentially forming a mid-term consolidation channel.
What to expect in the coming price action
Cardano’s short-term bias remains neutral to cautiously bullish while trading below $0.76. A clean breakout with strong volume could open the door to targets near $0.90 and $1.00, while rejection from this zone would likely see price rotate back toward $0.49 support.
If the latter scenario plays out, it could mark the beginning of a wider consolidation range between $0.49 and $0.76, a structure that would provide a stronger foundation for the next bullish expansion phase.
