Cardano Technical Analysis on August 4, 2025: Is a New Rally Brewing?

A technical analysis of Cardano on August 4, 2025, exploring support, resistance, and indicators to forecast market trends.

Cardano (ADA), a trailblazer among third-generation blockchains, has long captured the attention of crypto investors with its robust ecosystem. As of August 4, 2025, Cardano’s price hovers around $0.7233, consolidating after a notable correction. Is this the calm before a new rally? Let’s dive into the charts and indicators to explore what’s next for ADA. Current Market Snapshot Cardano is currently trading within a defined range, with support at $0.68 and resistance at $0.81. This consolidation follows a drop from $0.935 to $0.695. The daily chart shows ADA near the 50-day Simple Moving Average (SMA) at $0.68, which could act as a critical support. The 24-hour trading volume is around $1.02 billion, reflecting strong market activity, though slightly lower than recent peaks. Key Support and Resistance Zones The primary support zone lies between $0.68 and $0.72, with a critical level at $0.68, aligned with the 50-day SMA. A break below this could trigger a deeper correction toward $0.56 or even $0.50. On the upside, resistance levels at $0.81 and $0.97 are key hurdles. A breakout above these could propel ADA toward its previous high of $1.19 or higher. Some analysts believe clearing $0.81 could spark a stronger bullish move. Indicator Insights The Relative Strength Index (RSI) is hovering around 48, signaling neutral momentum with potential for a bullish reversal. This level is not yet oversold, so the risk of an immediate sell-off is low. A move above 50 could hint at a return of bullish momentum. The MACD indicator shows a weak bearish signal, with the MACD line nearing the signal line. This could suggest fading momentum, but no clear reversal signal has emerged yet. Chart Patterns and Scenarios A recent 4-hour chart revealed a double bottom pattern near $0.68, which could indicate a bullish reversal. If this pattern holds, prices might test $0.81, and a confirmed break could target $0.97. Conversely, a break below $0.68 might lead to a test of $0.56. Some believe Cardano could sweep liquidity around $0.65 before resuming its uptrend. Broader Market Influences Beyond technicals, fundamentals play a role. Cardano’s ecosystem, with its growing decentralized applications (dApps) and smart contracts, has bolstered investor confidence. Speculation about potential ETF approvals for Cardano and positive news regarding Federal Reserve rate cuts could fuel bullish momentum. However, ADA’s correlation with the broader crypto market, particularly Bitcoin, means a market-wide correction could weigh on its price. Can Cardano’s strengths shield it from market volatility? Trading Strategy For short-term traders, buying near the $0.68 support with a stop-loss below $0.65 could be a reasonable setup, targeting $0.81. Long-term traders might wait for a confirmed breakout above $0.81 to reduce risk. In crypto’s volatile landscape, risk management is crucial—never allocate more than you’re willing to lose, and always use stop-losses. Wrapping Up On August 4, 2025, Cardano stands at a pivotal moment. Key support at $0.68 and resistance at $0.81 and $0.97 will shape its next move. Indicators suggest a neutral stance with bullish potential, but traders should stay vigilant for trend confirmation. Will Cardano conquer new highs once again? With disciplined risk management and attention to market signals, traders can navigate this dynamic asset with confidence.