In the latest market developments, Cardano (ADA) is demonstrating a bullish momentum, making a concerted effort to reclaim its April highs situated around the psychologically significant level of $0.4500. However, sustaining this upward trajectory hinges on overcoming a pivotal supply barrier.
Cardano’s Impressive Surge Faces Crucial Test
Having surged by nearly 65% since October 18, a turning point in the broader market sentiment, Cardano’s bullish run has been robust. Yet, the altcoin’s ascent may be reaching a zenith as it confronts a crucial supply barrier ranging from $0.3998 to $0.4099.
Analyzing the technical indicators, the Relative Strength Index (RSI) suggests a waning momentum, tilting towards the bearish side. Concurrently, the Awesome Oscillators (AO) histogram bars are displaying a red signal, inching closer to the midline and, eventually, the negative territory. This signals an increasing presence of bears in the market.
If selling pressure intensifies, there’s a risk of Cardano’s price being rebuffed from the supply barrier, potentially moving south and slipping below the support level of $0.3838. A sustained downtrend might extend into the previously identified supply barrier turned bullish breaker, ranging from $0.2876 to $0.3576, testing the support level at $0.3507, representing a 10% decline from current levels.
In a worst-case scenario, a continuation of the downtrend could be confirmed if Cardano’s price breaks and closes below the midline at $0.3255.

Conversely, a surge in buying activity could propel Cardano’s price into the supply zone between $0.3998 and $0.4099. A decisive break and closure above its midline at $0.4051 would invalidate the bearish outlook, potentially paving the way for a continuation of the intermediate trend.
In an optimistic scenario marked by heightened bullish sentiment, Cardano’s price might extend its gains to the psychologically significant level of $0.4500. In more ambitious projections, it could even reach the range high at $0.4619, indicating a substantial 17% ascent from current levels.