Cardano Eyes Range Breakout: Can Bulls Push ADA To $1?

Cardano is teasing a range breakout rally as social sentiment around ADA improves. Will this surge ADA’s price to $1?

With Bitcoin sustaining above the $83,000 mark, Cardano is waiting for a bullish comeback from a range-bound movement. Fluctuating in market cap, Cardano has been exchanging positions with Dogecoin for the 8th largest cryptocurrency in the market.

Currently, Cardano holds a valuation of $24.99 billion. Furthermore, the short-term consolidation is nearing a potential conclusion. Will this result in an ADA price rally above the $1 mark?

Cardano’s Reversal Eyes Range Breakout Rally

In the 4-hour price chart, Cardano has been maintaining a sideways trend since last week. The ADA trend momentum is coiling up, trapped within a range between $0.66 and $0.77. 

The Fibonacci levels further emphasize the significance of the range; the 38.2% and 50% retracement levels align with the $0.66 and $0.77 levels, respectively. Additionally, the Bollinger Bands are squeezing due to the consolidation range, reflecting intense compression of the trend momentum.

Currently, Cardano is facing resistance from the 20-day SMA, which acts as the midline of the Bollinger Bands. However, the short-term recovery hints at a potential bullish crossover in the MACD and signal lines.

Nevertheless, the moving averages are still in a negative trend, indicating weaker bullish strength.

Bullish Sentiments Spike Hits 4-month High 

Despite the consolidation over the 4-hour price chart, the social sentiment for Cardano has significantly improved. According to the latest tweet by Santiment, altcoins like Cardano are witnessing massive positive sentiment. 

According to the on-chain platform, bullish comments have surged as the U.S. Securities and Exchange Commission (SEC) classified ADA’s use case as “smart contracts for government services.”

This has driven the Cardano community’s bullish sentiment to its highest level in the past four months. Currently, for every negative comment toward Cardano, the market is seeing 3.5 positive comments. This is the highest since the week of October 30 to November 6.

Cardano (ADA) Price Targets 

As social sentiment for Cardano improves, the likelihood of a range breakout also increases. However, this depends on whether the bullish sentiment turns into actual demand for the ADA token.

Based on Fibonacci levels, a breakout rally would likely challenge the 78.6% Fibonacci level, slightly above the $1 psychological mark. On the flip side, the critical support levels are at $0.66, followed by $0.53.