ADA declined to $1.16 before bulls pushed prices back up to $1.20
Cardano (ADA) is looking for a bullish breakout after a downward move saw bears sink prices by 6.4% on Wednesday. The decline dragged prices from highs of $1.28 to lows of $1.16 before an attempted recovery met stern resistance.
At the time of writing, ADA is trading around $1.21, green on the day but still more than 3% down from its 24-hour high.
Cardano price outlook
A glance at the hourly trading chart shows that Cardano has struggled to break a critical resistance level around $1.21.
Technical indicators, however, favour the bulls, who could exploit this advantage to register fresh gains. The hourly RSI is beginning to turn upwards above 50, while the hourly MACD is strengthening after a bullish crossover.
If prices manage to rally above the 100-hour simple moving average ($1.208) and beyond the immediate resistance line at $1.22, an extended uptrend could follow. The Fibonacci resistance level at around $1.22 would provide the next hurdle.
If ADA were to reclaim the recent high of $1.28, an extended upside would likely bring into focus potential targets at $1.36 and $1.40.
Alternatively, a downtrend could set in if the bears reassert their dominance. This would likely be the case if prices break below the Fib level at $1.19 to the intraday low of $1.16.
Further selling pressure could lead to a decline below $1.10, in which case bears would target the psychological support zone of $1.00.
Below the dollar mark, Cardano has previously found sturdy support at $0.80 and $0.70.