With Cardano (ADA) price trend regaining momentum, bullish forces are plotting a potential breakout rally to reclaim the $1 psychological mark.
As Bitcoin bounces back to nearly the $96,000 level after a brief dip to the $93,000 mark, Cardano maintains an overall bullish trend. Trapped within a triangle pattern, the short-term recovery in ADA’s price trend hints at increased breakout potential.
As the broader market anticipates an altcoin season in 2025, Cardano is likely to experience a breakout rally. Will this triangle breakout push ADA to reclaim the $1 psychological mark? Let’s find out.
Cardano Analysis: Recovery Within Triangle Eyes Breakout Rally
In the 4-hour price chart, Cardano reveals a long-coming resistance trend line. Under the influence of the resistance trendline, the short-term trend in ADA remains significantly bearish.
The newfound support near the $0.66 horizontal level has resulted in a bullish reversal. Meanwhile, this price action forms a symmetrical triangle pattern on the 4-hour chart.
Currently, the lower price rejection from the local support trendline in Cardano suggests a bullish reversal within the pattern. The ADA’s price trend reversal shows bullish dominance at the 0.236 Fibonacci level, near the $0.75 psychological mark.
Cardano is trading at a market price of $0.7642, registering an intraday gain of 1.38%. This marks a significant recovery after a 6.82% drop last night.
With the bullish recovery, the MACD and signal lines indicate a potential bullish crossover as the bearish histograms decline. Furthermore, the True Strength Index (TSI) is nearing the oversold region, reflecting a potential bullish comeback.
Thus, the technical indicators and short-term recovery suggest a potential breakout for Cardano.
Crucial Resistance at $1: Can ADA Sustain the Rally?
Based on Fibonacci levels, a bullish breakout will likely challenge the overhead resistance near the 0.786 Fibonacci level. This crucial resistance lies slightly above the $1 psychological mark at $1.0135.
On the flip side, a bearish breakdown below the local support trendline could lead to a significant drop in Cardano’s price. This decline might retest the $0.66 support level or even plunge to $0.55 in an extreme scenario.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
