The technical analysis of Cardano (ADA) on July 12, 2025, indicates a market with short-term bullish potential but a likelihood of retracement to support levels. Based on market data, Cardano’s current price is approximately 0.7380, reflecting a 1.33% decline over the past 24 hours. This price is near a key resistance zone around 0.86, which has repeatedly blocked further upward movement. On the 4-hour timeframe, Cardano displays an ascending triangle pattern, typically a bullish continuation pattern, suggesting buying pressure beneath the resistance level. However, a supply zone around $0.86 could trigger a liquidity grab and lead to a temporary pullback. The Relative Strength Index (RSI) is currently at 48, indicating a neutral state and not yet in overbought (above 70) or oversold (below 30) territory. This suggests the market is currently in a consolidation phase. Key support levels are located between 0.575 and 0.582, which could act as a price floor during a correction. This zone aligns with a demand zone, making it an attractive entry point for buyers. If Cardano breaks the 0.86 resistance with strong trading volume, the next target could be 1, aligning with the 1.618 Fibonacci level. The MACD indicator shows a neutral signal, with the MACD line close to the signal line. Trading volume has also been relatively low in recent days, which may indicate a lack of strong buying or selling pressure. Traders should pay attention to Cardano-related news, such as network upgrades or increased adoption in the DeFi ecosystem, as these can impact price. From a price pattern perspective, a double bottom pattern is observed on the daily timeframe, which could signal a long-term bullish trend. However, traders should wait for confirmation of a breakout from the ascending triangle pattern in shorter timeframes to avoid potential price traps. Risk management using stop-loss orders below key support levels, such as $0.575, is highly recommended. Overall, Cardano appears to have short-term bullish potential, but traders should prepare for a possible pullback to $0.575. Continuous monitoring of indicators and price levels will aid in better decision-making.