Key Insights:
- Cardano’s price jumps 6%, trading near key resistance at $0.75.
- Analysts identify a bullish cup-and-handle pattern for ADA.
- A breakout above $1.20 could trigger a rally toward $3 or higher.
Cardano price is showing signs of recovery, gaining 6.02% in the last 24-hours of trade. . Recent breakouts of the price from its lows have investors intensely watching for an upcoming breakout. Analysts predict ADA may be moving toward significant price growth based on their projections for reaching previous record levels again.
Cardano’s Price Action Shows Signs of Strength
Cardano is currently trading at $0.7116 after a price recovery from its $0.6471 daily low. The price recovering above its previous lows reflects increased buying demand from traders. The cryptocurrency remains below key resistance levels, but traders are closely monitoring whether it can maintain its momentum.
Market analyst Av_Sebastian also shared a recap of the recent ADA price surge where Cardano price increased by 100% from $0.60 to $1.20 after U.S. strategic reserves news was released. His point was that if history repeats itself, ADA could rise quickly when the market enters a bullish phase.
Cardano Price Technical Indicators Suggest a Potential Breakout
Market analysts have identified a bullish cup-and-handle pattern which historically results in substantial price increases. The confirmation of this pattern would enable ADA to surpass its current levels between $1.00 and $1.20 to access a new trading zone.
The Relative Strength Index (RSI) stands at 45.24, with a moving average of 47.30. The market conditions for ADA remain neutral since neither excessive demand nor supply controls its price movement. The price exceeding 50 would indicate a confirmation of robust bullish momentum.
The Cumulative Volume Delta indicator has increased to 3.42 million which implies that market buyers are entering the market. These strong buying signals may contribute to maintaining an upward price trend.
Data from Moving Average Convergence Divergence indicates neutral conditions because its MACD line at-0.0109 matches closely with its Signal line at -0.0107. While this suggests weak momentum for now, a bullish crossover could indicate a shift toward higher prices.
The open interest for Cardano (ADA) amounts to $439.1 million which mainly consists of perpetual contracts at $438 million and futures contracts at $1.1 million. The total open interest has expanded by 1.10% throughout the last 24 hours.
What Next For ADA Price?
Cardano faces immediate resistance between $0.75 and $0.80, where sellers have previously entered the market. A break above this level could lead to a price rally toward $1.00 and beyond.
If ADA fails to hold current levels, support exists around $0.65, which has served as a bottom during recent price action. Failure to hold above this support levels the price is likely to dip towards $0.50 and $0.60 levels.
Furthermore, analyst CryptooELITES a predict that Cardano may increase by 12X when following its standard market movement pattern. ADA shows a position below 0.5 Fib level ($0.865) according to the analysis provided by the analyst.
Cardano price moving above $1.175 (0.618 Fib level) will establish long-term bullish momentum. The next major resistance lies at $3.17, aligning with ADA’s previous all-time high. If momentum continues, $6.44 and $9.32 could be future targets.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.