Cardano Defends Key Support Zone

Cardano (ADA) demonstrated remarkable resilience this Thursday as buyers aggressively defended the crucial $0.75 support level. The cryptocurrency's rebound from this technical threshold has reignited bullish sentiment, with traders now eyeing a potential climb toward the psychologically significant $1 mark.

Technical Landscape Shows Bullish Signals

The daily chart reveals ADA's successful test of the 20-day simple moving average ($0.73), forming a long-tailed candlestick that indicates strong accumulation at lower levels. This price action follows Wednesday's sharp decline from the $0.86 resistance level, which had briefly been overcome earlier in the week.

【Key Technical Levels】
• Immediate support: $0.75-$0.73 zone
• Breakout resistance: $0.94
• Psychological target: $1.02
• Long-term ceiling: $1.17

Market Structure Analysis

The 4-hour timeframe presents a more cautious picture, with moving averages approaching a bearish crossover. This suggests bears haven't yet relinquished control, potentially creating selling pressure around the 20-SMA during recovery attempts.

——Market analysts note the $0.86 breakout may have been a bull trap if ADA fails to hold above the 20-day SMA——. Such a scenario could trigger a deeper correction toward the 50-day SMA at $0.66.

Potential Scenarios Unfolding

Two distinct paths emerge for ADA's near-term trajectory:

1. Bullish Continuation: A sustained push above $0.94 could validate the rebound and open the path to $1.02, with $1.17 as the next major target.

2. Bearish Breakdown: Failure to maintain current levels might see ADA retest $0.70 support, potentially delaying the next upward move.

Market Context and Sentiment

The current price action mirrors broader altcoin behavior, where sharp rallies often face equally vigorous pullbacks. This pattern typically shakes out weak hands before resuming upward trends. As of press time, ADA's trading volume and market depth suggest accumulation continues at current levels.

【Notably】The cryptocurrency's ability to defend its 20-day SMA during Thursday's trading session marks a significant technical victory for bulls. Market participants will closely monitor whether this support holds through the weekend trading period.

——Industry observers caution that all trading involves risk, urging investors to conduct independent research before making decisions——