The technical analysis of Cardano (ADA) on July 4, 2025, suggests a cautious bullish trend dependent on several factors. Cardano is currently trading around $0.545, down approximately 1.2% over the past 24 hours. However, recent chart patterns and indicators point to short-term bullish potential, particularly if key support levels hold.
Chart data shows Cardano forming a double-top pattern near 0.585 on the daily timeframe, which recently broke downward to 0.535. However, on the 4-hour timeframe, the price is forming an ascending triangle pattern, which typically precedes a bullish breakout. The RSI stands at 52, indicating mild bullish momentum. The MACD has recently shown a bullish crossover, providing a positive signal for continued upward movement.
Key resistance zones are located between 0.575 and 0.585, levels that have previously capped price advances. A breakout above this zone with high trading volume could activate a price target of 0.75. Conversely, major support zones lie between 0.51 and 0.53, with an additional strong support at 0.48, which could prevent further declines in case of a correction. Trading volume over the past 24 hours is approximately $450 million, reflecting moderate market activity.
Price action analysis indicates Cardano is nearing the apex of the ascending triangle on the 4-hour timeframe. A breakout above 0.585 could confirm the 0.75 target, while a breakdown may push prices toward 0.48. The 50-day simple moving average at 0.54 acts as dynamic support, while the 200-day moving average at $0.53 suggests a bullish long-term trend.
From a market sentiment perspective, Cardano benefits from strong community support and ongoing ecosystem development. Recent news about network upgrades and increased adoption in DeFi projects could bolster positive market sentiment. However, a bearish divergence on the RSI in the daily timeframe warns of potential correction risks. The short-term outlook for Cardano is bullish, but holding the $0.51 support and increasing trading volume are critical for sustaining this trend. Traders should closely monitor key levels and indicator signals while practicing effective risk management.