Cardano Technical Analysis: Trend and Key Levels on May 21, 2025

Technical analysis of Cardano on May 21, 2025, focusing on resistance, support, and indicators

On May 21, 2025, Cardano (ADA), a prominent blockchain in the crypto market, continues to attract attention from technical analysts. ADA’s price is trading around $1.15, having risen from $1.00 to a high of $1.22 in recent weeks. However, selling pressure near key resistance levels has introduced price volatility. Daily timeframe technical analysis shows ADA forming an ascending channel pattern since early March 2025. The price is currently near the channel’s midline, indicating a balance between buyers and sellers. The Relative Strength Index (RSI) at 64 confirms bullish momentum but remains below the overbought territory (above 70). This suggests limited upside potential in the short term. Key resistance levels for Cardano are at $1.20 and $1.35. The $1.20 level is significant due to recent price highs and high trading volume in this zone. A breakout above this could target $1.35, aligning with the 61.8% Fibonacci retracement from the prior decline. Conversely, key support levels are at $1.00 and $0.90. The $1.00 level coincides with the 50-day moving average (MA50) and serves as strong support. The MACD indicator provides bullish signals, with the MACD line above the signal line and the histogram in positive territory. However, a slight reduction in histogram size may indicate weakening momentum. A mild bearish divergence in RSI is also observed, where the price hits new highs, but RSI forms lower highs, potentially signaling a price pullback. Moving averages are critical to the analysis. The 50-day moving average is at $1.05, and the 200-day moving average is at $0.95. ADA is trading well above both, confirming a bullish trend in the medium and long term. However, the price’s distance from the 200-day moving average suggests the uptrend may be overextended. ADA’s daily trading volume reached approximately $1.8 billion on May 21, 2025, reflecting relatively high market activity. However, a relative decline in volume compared to recent price highs could indicate reduced buyer participation. The On-Balance Volume (OBV) indicator continues to rise, suggesting demand outweighs supply. From a price pattern perspective, ADA is testing the midline of the ascending channel. A breakout above this line could lead to a strong bullish move toward $1.35. Conversely, a rejection at this level may push the price back to the $1.00 support. Recent candlestick patterns, such as a doji near resistance, indicate market indecision. In the short term, traders should monitor the $1.00 support and $1.20 resistance. A breakout above resistance or a bounce from support could guide trading strategies. For long-term investors, accumulating at key support levels like $1.00 to $0.90 may offer attractive opportunities. Overall, Cardano exhibits a mild bullish trend on May 21, 2025, but divergence signals and declining volume warn of a potential short-term correction. Traders should employ careful risk management and monitor indicators for informed decisions.