Cardano Price Holds Support at $0.38: Signals for Bullish Continuation

Cardano’s price is currently maintaining a support level of $0.38, following a bullish retest. Rising trading volume enhances the potential for further upward movement, with the next significant resistance target around $0.48.

Key Takeaways

Current Price Action: Cardano (ADA) is showing a bullish trend after reclaiming important support at $0.34.
Support Level: The $0.38 level has been confirmed as a strong support zone, indicating active demand.
Volume Behavior: Increased volume during rallies suggests strong buyer participation, supporting the ongoing upward trend.
Next Resistance Level: The next target for Cardano's price is $0.48, which will serve as a crucial test for continued bullish momentum.

Cardano price bullish retest indicates higher prices.

Analyzing Cardano's Price Development

Cardano price holds $0.38 support as bullish retest signals continuation - 1
ADAUSDT (4H) Chart, Source: TradingView

Recent price action for Cardano (ADA) has exhibited strong reversal traits after a significant rally, which reclaimed essential structural support, shifting market conditions positively in the short term. After successfully defending a high-time-frame support zone near $0.34, ADA demonstrated strength, indicating renewed buyer interest and growing momentum.

Following this upward movement, the price returned to the $0.38 range, an area known for its past significance as a structural support block. The ability of ADA to hold within this zone and confirm a bullish retest implies that buyers are actively defending higher price levels, resisting any attempts for the price to revert to its prior downward trend. With improved trading volume and a strengthened price structure, Cardano is poised for continued growth as long as this support holds.

Key Technical Insights for Cardano

The recovery above $0.34 marks a vital technical improvement as it represents a high-time-frame support zone that previously acted as a significant demand area. When Cardano's price broke back above this region, it shifted from a weak phase to a more constructive recovery.

Analyzing market structure reveals that the aggressive buying following the rally indicates a strong commitment from buyers, rather than a slow upward trend. Such impulsive price movements signify stronger market conviction and can often serve as an early indicator of a potential trend reversal.

This rally disrupted the earlier bearish trend, where the price was consistently capped by resistance and unable to establish higher highs. By reclaiming essential support and moving higher, ADA is beginning to establish a more bullish market structure that needs to be maintained throughout the current retest process.

Confirmation of Demand at $0.38

Following the rally, ADA returned to the $0.38 high-timeframe order block and successfully maintained it as support. This retest is crucial, as bullish continuation scenarios typically require some price stabilization at key breakout areas before they can resume an uptrend.

The stability at $0.38 indicates that buyer demand remains strong at this level. Instead of selling off after the initial rally, the market is showing acceptance above this order block, reinforcing the idea that the upward movement is backed by active market participation.

This structural confirmation is important. When a price breaks into a new zone and then successfully retests it, it often signals a shift into a higher-value market area, establishing a solid groundwork for continued price increases rather than drops.

Volume Insights Support the Bullish Outlook

Volume activity further supports this bullish narrative. The presence of strong volume during the rally and the subsequent hold at support suggests increasing market participation, enhancing the likelihood of continued upward movement.

In many cases, failed rallies experience quick reversals due to weak volume. However, in Cardano's case, increasing volumes around key support areas suggest that buyers are actively defending the established price structure. Rising volumes coupled with price stability indicate accumulation, where demand absorbs selling pressure, ultimately paving the way for an upward movement.

As long as volume remains favorable and ADA continues to hold the $0.38 region, the likelihood of a price increase remains high.

Anticipating Resistance at $0.48

If Cardano can sustain support at $0.38, the next major price target is $0.48, aligning with high-time-frame resistance near the value area high. This level poses a critical barrier where the price is likely to encounter supply, representing the next significant challenge for bullish continuation.

Reaching $0.48 would not only signify a continuation of the current trend but would also validate the broader shift in market structure. A breakthrough above this level would indicate that buyers are reclaiming essential resistance and increase the chances of further price advancement beyond the current recovery phase.

Until $0.48 is breached, ADA remains in the early stages of a potential trend reversal. Nevertheless, the ongoing support at $0.38 keeps the bullish outlook on the table.

Short-Term Price Expectations

In the coming days, the ability of Cardano to keep the $0.38 support zone intact on a closing basis will be essential for its bullish continuation theory. If ADA can maintain this order block and demonstrate healthy volume behavior, the likelihood of a continued move towards the $0.48 resistance level is favored.