Cardano (ADA), a standout in the world of third-generation blockchains, has long captured attention with its cutting-edge proof-of-stake technology and a deeply committed community. As of August 7, 2025, ADA is trading around $0.7418. While the last 24 hours showed a modest 0.99% gain, the cryptocurrency experienced a significant 12.34% pullback over the past week after reaching a local peak near $0.97. This correction has brought the price back to a critical juncture, testing the conviction of both buyers and sellers. Despite the short-term retreat, Cardano’s continuous network development, including the anticipated Basho phase for scalability and the Voltaire phase for governance, alongside strong social sentiment, maintains a foundational optimism among long-term holders. The central question for traders today is: Can ADA successfully defend its current support zone and initiate a sustainable rally to reclaim higher price targets? A detailed examination of the market structure, key technical levels, and momentum indicators is essential to map the path forward for Cardano. --- Key Support and Resistance: Mapping the Price Battlefield Cardano's price chart on the daily and four-hour timeframes paints a picture of a decisive standoff. The immediate price action is holding just above a crucial, well-established support level at $0.702. This level is highly significant as it has historically served as a strong reversal point, where prior selling pressure was consistently met with aggressive buying interest. For the bulls to maintain their control in the near term, holding this level is non-negotiable. A slight dip below this point, if quickly recovered, might be viewed as a 'bear trap' designed to shake out weak hands before a move higher. However, a decisive daily close below $0.702, especially on high volume, would signal a significant shift in market sentiment, likely triggering stop-losses and accelerating a downside move. The next major safety net for ADA, and a much stronger demand zone, lies at $0.64. This price point aligns not only with previous swing lows but also coincides with a key Fibonacci retracement level from the last major upward impulse. Should the market experience a broader crypto-wide correction or if $0.702 fails to hold, a decline toward $0.57 could be on the cards. While seemingly bearish, a move to $0.57, which often corresponds to the 61.8% Fibonacci level, is frequently seen as a healthy, deep correction in a long-term bullish trend, potentially offering an attractive accumulation opportunity for risk-tolerant investors. On the upside, the immediate challenge is the resistance level at $0.84. Cardano recently attempted to breach this point but encountered fierce selling pressure, suggesting a concentration of supply at this price. A break above $0.84, however, would be a high-conviction signal, confirming that the recent correction has ended and that buyers have regained momentum. Such a breakout would immediately put the recent local high of $0.97 back in focus. Beyond $0.97, the psychological resistance of $1.00 remains the ultimate short-term target. Clearing the $1.00 mark, particularly if accompanied by a surge in trading volume and a favorable market environment (e.g., positive news about the Hydra scaling solution or a general Bitcoin rally), would likely spark a new wave of retail and institutional interest, potentially setting the stage for a continuation toward the $1.20 resistance area, which has historic significance as a distribution zone from earlier in the year. --- Momentum and Volume Indicators: Taking the Market’s Pulse Technical indicators provide vital clues about the market's underlying strength and momentum. The Relative Strength Index (RSI) on the daily chart is currently residing around the 52 mark. This positioning is strategically bullish, signaling that ADA is neither overbought (above 70) nor oversold (below 30). This neutral-to-mildly bullish reading suggests that the asset has room to run higher without immediately encountering momentum exhaustion. For a sustained rally toward $0.97, the RSI would need to hold above 50 and trend steadily toward 70, which would indicate strong and consistent buying pressure. A drop below 40, conversely, would suggest that sellers are taking decisive control. Looking at the moving averages, the 50-day Moving Average (MA50) is currently positioned around $0.71. Since the current price of $0.7418 is trading above the MA50, this average is acting as dynamic support, reinforcing the medium-term bullish outlook. This is a classic technical sign that the overall trend remains intact. However, a more cautious signal comes from the Moving Average Convergence Divergence (MACD) indicator. The MACD line is currently flatlining and is threatening to cross below the signal line. While the MACD histogram is in neutral territory, a bearish cross of the MACD lines would generate a sell signal, suggesting that the short-term momentum is stalling or reversing. Traders must monitor this indicator closely: a sustained move of the MACD histogram into positive territory would confirm the bullish thesis, whereas a negative cross would favor a period of further consolidation or pullback toward the $0.64 support. Furthermore, volume analysis is crucial here; the recent price drop from $0.97 occurred on decreasing volume, which can be interpreted as a positive sign suggesting that the selling pressure was more reflective of profit-taking by short-term traders rather than mass capitulation by long-term holders. A breakout above $0.84 must be accompanied by a significant spike in trading volume to be considered valid and sustainable. --- Price Patterns and Forward-Looking Strategy On the shorter timeframes, particularly the 4-hour chart, Cardano's price action has been carving out a descending triangle pattern. This pattern is characterized by a horizontal support line (near $0.702) and a downward-sloping resistance line (currently around $0.84). The descending triangle typically signals consolidation and often, though not always, resolves in the direction of the underlying trend. Given Cardano's long-term bullish narrative and its strong development milestones, many traders would anticipate an upward breakout. A confirmed close of a 4-hour candle above the upper trendline, ideally coupled with a visible increase in buying volume, would be the breakout signal, potentially paving the way for an aggressive rally toward $0.97 and $1.00. Conversely, a definitive break below the horizontal support at $0.702 would confirm the bearish scenario and likely trigger a rapid move to the stronger support at $0.64. For an actionable trading strategy, patience and disciplined risk management are paramount. A low-risk long setup could involve entering a position near the crucial $0.702 support zone, placing a tight stop-loss order just below the $0.64 structural support. This strategy aims to capitalize on a rebound from a proven demand zone while limiting potential losses if the market structure breaks down. For those leaning bearish, the most prudent action is to wait for a confirmed breakdown of the $0.702 level with a strong volume confirmation before considering a short position, targeting the $0.64 and $0.57 levels. The overarching market outlook remains cautiously bullish. The network’s fundamental strengths, including the successful implementation of smart contract capabilities and the growing total value locked (TVL) in its decentralized finance (DeFi) ecosystem, continue to bolster the price floor. However, traders must remain acutely aware of external market factors, such particularly the ongoing influence of Bitcoin's price action and broader macroeconomic decisions, such as shifts in global interest rate policies, which retain the power to override purely technical patterns. Cardano’s potential for a major rally is on the horizon, but the immediate move hinges on the outcome of the battle at $0.702.