Cardano [ADA] price prediction – 8% rally next, but here’s why you should be careful!

Key Points

1. Cardano has gained 17% since early July, trading at $0.626, but the weekly chart shows a critical support level at $0.535 (78.6% Fibonacci retracement).

2. The 1-day chart indicates bullish momentum with RSI above 50 and OBV showing steady demand, suggesting a potential climb to $0.66-$0.68.

3. Resistance at $0.684 (78.6% retracement) is a key supply zone; breaking past $0.68-$0.7 would signal strong bullish conviction.

4. On-chain metrics show declining development activity and lukewarm daily active addresses since March, indicating weak organic demand.

5. A breakout beyond $0.68 depends on Bitcoin's bullish trajectory, but current on-chain data suggests a lack of strong conviction for a sustained recovery.