Cardano Faces Resistance Below $1 After Market Shake-Up

Key Insights

Cardano’s price peaked at $0.987 before dropping to $0.8215 due to market-wide liquidations triggered by macroeconomic volatility.

Repeated bullish efforts have failed to breach the resistance zone between $0.93 and $0.99, keeping ADA below the key $1 threshold.

ADA rebounded sharply after comments from the Federal Reserve, but continued consolidation is expected unless strong momentum builds.

Cardano reached a peak of $0.987 on August 17, following a rally that began in late July after a sharp market sell-off. This bullish momentum momentarily pushed ADA toward the $1 mark, briefly fueling optimism among investors. However, the rally proved unsustainable. As soon as the asset touched the $1 level, resistance emerged, leading to a steady pullback.

Over the next few days, Cardano bulls continued testing the upper range near $0.90. Despite multiple efforts, they failed to regain upward traction. Price action repeatedly stalled between $0.93 and $0.99, forming a visible resistance zone. Market sentiment remained fragile as consolidation replaced upward movement.

Macroeconomic Uncertainty Triggers Sell-Off

Broader financial markets faced renewed volatility earlier this week, triggered by economic uncertainty and cautious investor sentiment. This environment led to widespread liquidations across digital assets, and Cardano was no exception. ADA dropped from $0.987 to a low of $0.843 by August 19, marking a two-day decline that erased significant gains.

On Friday, Cardano rebounded sharply from the week’s low of $0.8215 to reach $0.9415. This move followed remarks from Federal Reserve Chair Jerome Powell, suggesting a potential shift in interest rate policy. Traders reacted positively to signals that the central bank might ease monetary tightening even before inflation fully settles, triggering a short-term relief rally in the crypto market.

Resistance Zone Holds Strong Near $1

Despite the recent recovery, Cardano remains constrained below a firm resistance band between $0.93 and $0.99. This range has been retested several times since August 15 without a successful breakout. Momentum indicators, including the daily RSI, have turned positive, but analysts suggest continued consolidation is likely in the near term.

In the event of another downturn, support is expected near the 50-day simple moving average, positioned at $0.79. This level could act as a buffer if bearish sentiment resumes. Until strong buying pressure clears the overhead resistance, ADA’s return to the $1 mark remains uncertain.