Cardano is approaching a potential breakout rally amid market recovery and a rising number of long positions. Will this lead to an ADA price surge to $1?
As Bitcoin reclaims the $87,000 mark, the altcoins are gradually regaining momentum. Cardano, in the past 24 hours, has surged by 1.79% to sustain its dominance above the $0.70 psychological mark.
Currently, the ADA token is trading at a market price of $0.7239, marking its second consecutive bullish candle. With a fresh bullish start to the week, the recovery is aiming to surpass the 200-day EMA line. Will this recovery lead to a price surge to the $1 psychological mark?
Cardano Analysis Teases Breakout Rally
On the daily chart, the ADA price trend shows a short-term rounding-bottom reversal from the $0.70 psychological level. This completes a morning-star pattern on Sunday with a 1.31% recovery.
The bullish recovery continues with an intraday price surge of 1.58%, creating its second consecutive bullish candle. However, the recovery run faces resistance from the 200-day EMA line.
The dynamic average line acts as a crucial short-term resistance, keeping bullish growth in check. Moreover, due to the prevailing downturn and short-term consolidation, the 20-day and 200-day EMA lines are on the verge of giving a bearish crossover.
However, as the broader market recovers, a bullish recovery in Cardano that surpasses the average line will likely reduce the chances of any bearish crossovers.
Currently, consolidation is keeping the Cardano price between $0.70 and the 61.80% Fibonacci level at $0.7351. Due to the short-term consolidation, the daily RSI is approaching the halfway level, reflecting neutrality in trend momentum.
Increased Long Positions Amid Market Recovery
The current Cardano price trend shows a double-edged scenario at play. However, the broader market recovery signals a potential boost for the Cardano futures market.
Open interest has surged to $785.91 million, while the funding rate of the long-to-short ratio has reached a neutral point at 1.0396. This marks a significant rise in the number of bullish positions over the past three days.
Currently, the funding rate is at -0.0029%, reflecting a slight weakness in bullish sentiment.
Will Cardano Price Hit $1?
According to the Fibonacci levels, a bullish breakout of the 61.80% level will likely result in a price surge to the 78.60% level. This crucial resistance is just below the $1 psychological mark at $0.9216.
On the flip side, the 50% level at $0.6272 remains a key support for Cardano. A closing below this level will likely test the long-standing support trendline near $0.5708.
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.
