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Shocking Secrets: 5 Reasons Cardano (ADA) is Poised for a Price Surge
Discover the Hidden Potential of Cardano in Today’s Market
On May 21, 2025, Cardano (ADA) is trading at $0.7550 on Coinbase, showing signs of recovery after a period of volatility. The 4-hour chart indicates that ADA approached the 50-period exponential moving average (EMA) at $0.7557, briefly crossing it before closing just below this critical resistance level.
Adausd 4h price diagram. Source: TradingView
The price began to rise from the $0.72 zone after a sharp decline in early May. On May 8, ADA reached a local maximum of approximately $0.86, but heavy selling pressure caused a drop of about 14%, bringing it down to a low of $0.715 on May 18. The trading volume remained moderate at 3.79 million, indicating cautious market participation. For ADA to confirm a short-term bullish trend, it must decisively close above the EMA.
RSI Turns Positive After Bear Phase
The relative strength index (RSI) on the 4-hour chart turned positive on May 50, now sitting at 52.82, recovering from a low of nearly 33 recorded on May 17. This upward movement suggests an improvement in momentum, although it does not yet confirm strong bullish pressure.
From May 9 to May 19, ADA experienced persistent selling. During this period, the RSI fluctuated between 35 and 45, indicating a weak buying percentage. The recent rise above 50 signals a potential shift in trend.
Adausd RSI 4H diagram. Source: TradingView
The 14-period RSI has crossed its signal line, hinting at a shift in momentum. However, the indicator must maintain levels above 55 to confirm the continuation of the bullish trend.
Key Resistance Levels: $0.78 and $0.80
ADA faces resistance in the $0.78 to $0.80 range, a zone that constrained the price from May 14 to May 16. For bulls to gain momentum, they must push through this area to pave the way toward $1. Until then, the token remains trapped in the $0.72 to $0.80 range.
If ADA breaks through the $0.80 level, the next significant target is $0.86, which marked the peak on May 9. A breakthrough above this maximum could generate the momentum needed for a rally toward the psychological $1 level.
However, risks remain if ADA closes below $0.72. In such a scenario, the price may retreat to $0.68, the last seen level in early May. The upcoming sessions will reveal whether buyers can maintain this momentum.
Disclaimer: The information presented in this article is intended for informational and educational purposes only. This article does not constitute financial advice. Coin Edition is not responsible for any losses incurred as a result of using the content, products, or services mentioned. Readers are advised to exercise caution before making any financial decisions.
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Frequently Asked Questions
- What is Cardano (ADA)?
Cardano is a blockchain platform that aims to provide a more secure and scalable way to develop decentralized applications and smart contracts. - Why is ADA’s price fluctuating?
Price fluctuations are common in cryptocurrency markets due to factors like market sentiment, trading volume, and external economic influences. - What is the significance of the EMA?
The EMA helps traders identify trends by smoothing out price data, making it easier to spot potential support and resistance levels. - How does the RSI indicator work?
The RSI measures the speed and change of price movements, helping traders identify overbought or oversold conditions. - What are the key resistance levels for ADA?
The key resistance levels for ADA are currently between $0.78 and $0.80, which must be surpassed for further upward movement. - What should I do if ADA drops below $0.72?
If ADA drops below $0.72, it may indicate a bearish trend, and traders should reassess their positions and strategies. - How can I stay updated on ADA’s performance?
Follow cryptocurrency news platforms, join online communities, and subscribe to updates from reliable sources. - Is investing in ADA risky?
Like all cryptocurrencies, investing in ADA carries risks due to market volatility. It’s essential to do thorough research before investing. - Can I trade ADA on multiple platforms?
Yes, ADA is available on various cryptocurrency exchanges, allowing for flexibility in trading. - What are the future prospects for Cardano?
Future prospects depend on market conditions, technological advancements, and adoption rates within the blockchain community.
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