Cardano (ADA) price is in consolidation as analysts watch its crucial support and resistance points

Market analysts monitor ADA price levels because they may signal upcoming bullish trends or additional price drops.

Cardano (ADA) price has been consolidating in recent trades, with analysts watching the crucial support and resistance points closely.

Cardano Price Consolidates as Support Level Remains Key

Trading data over the past few days shows ADA price consolidating around the $0.70 support level.

This price zone has been showing strength as it's tested multiple times in the past, and its continued presence may suggest that ADA could see some bullish momentum in the coming days.

A successful defense of the $0.70 ADA price could trigger upward action provided that the overall market also shows some stability.

However, a breakdown below this important support level signals a pending severe price correction.

The next support level to watch would be $0.60, which has historically provided a strong price floor.

Overall, Cardano price faces crucial times ahead which will decide if its current support stands or if we see more selling pressure on crypto.

Grayscale’s Interest in Cardano Could Spark Recovery

Moreover, some fundamental developments show promise for Cardano to experience a market recovery in the mid-term.

Grayscale filed a petition to create a Cardano-based exchange-traded fund (ETF) which received acknowledgment from the United States Securities and Exchange Commission (SEC).

ADA benefits from institutional attention through this significant regulatory support.

The SEC’s decision to accept these filings signals increasing support for crypto.

Consequently, the increased attention on cryptocurrency market oversight during this period has brought positive news for Cardano investors.

The recognition of Cardano by such a prominent entity like Grayscale is likely to encourage more institutional interest. This could in turn support ADA price in the longer term.

Cardano Technical Indicators Align with Previous Bull Cycles

In the shorter term, the technical indicators for Cardano price show bullish signals.

Crypto analyst Dan Gambardello closely follows the Relative Strength Index (RSI) which remains at a crucial point in its current retracement.

This RSI retracement point functioned historically as a trigger for corrective phases to end before new uptrends began.

Past bull cycles during 2020 and 2021 showed this pattern resulting in significant gains for ADA price.

At the same time, the moving average indicators on Cardano indicate upcoming bullish price action if the support stays above $0.70.

A positive crossover of the 50-week with 20-week moving averages shows buying momentum which indicates a potential for upward price movement.

ADA needs to surpass immediate resistance barriers starting with $0.80 before starting a new upward trend.

Meanwhile, prominent expert Ali Martinez recently identified ascending triangle formations within Cardano price chart indicating a possible breakout pattern.

If ADA breaks through its $0.74 support it might rise to $1 due to increasing positive market sentiment.