Cardano eyes a breakout at $0.66, with long positions surging to 57%. Will this post-retest recovery push ADA to $0.76?
The bullish struggle in the crypto market to sustain momentum keeps the overall conditions uncertain. Amid such volatility, Cardano continues to fluctuate between $0.60 and $0.66.
Currently, the ADA token trades at a market price of $0.6327 with an intraday recovery of 1.35%. Hence, at a potential post-retest reversal of $0.66, will this short-term recovery drive Cardano prices back to $0.76?
Cardano Price Targets $0.66 Breakout
The 4-hour price chart shows a bullish breakout from a triangle pattern that formed during the pullback phase in late March.
Following a quick recovery on Monday, Cardano recorded a bullish breakout. However, as the broader market failed to sustain momentum, Cardano faced strong resistance above $0.64.
This resulted in a quick pullback to retest the triangle pattern. Currently, ADA’s price action displays a bullish engulfing candle, completing a morning star pattern. This indicates a high likelihood of a post-retest reversal.
At present, Cardano is attempting to surpass the 50% Fibonacci level at $0.6324. Meanwhile, the increased volatility in the short-term pullback has led to a convergence of the MACD and signal lines, creating uncertainty in the technical outlook and signaling a potential bearish reversal.
However, the Bollinger Bands have expanded after a short-term squeeze, suggesting the possibility of continued bullish momentum.
Based on Fibonacci levels, if ADA breaks through the 61.8% resistance at $0.66, the post-retest recovery could extend to $0.76. On the downside, the key support level lies at the 38.2% Fibonacci retracement at $0.60, followed by horizontal support at $0.57.
Long Positions Hit 57% Amid Growing Bullish Sentiment
As Cardano positions itself for a possible bullish reversal, the derivatives market remains stable in terms of open interest. Over the past week, Cardano’s open interest has consistently held above the $600 million mark.
Currently, it stands at $639 million, with a funding rate of 0.0035%, highlighting a short-term bullish trend. The surge in long positions further supports the expectation of a bounce-back.
According to Coinglass’s ADA Long-to-Short Ratio chart, long positions have surged to 57.06% in the past four hours, pushing the ratio to 1.3288 and reinforcing a strong bullish sentiment. Thus, derivative market data suggests a high probability of a post-retest reversal for Cardano.
Analyst Predicts New All-Time High for Cardano
Crypto analyst CryptoPatel supports this bullish outlook. He sees massive upside potential for Cardano, with a projected price target of $5. The analyst points to a rising channel pattern on the weekly chart as ADA approaches the lower boundary.
He also notes an ongoing accumulation phase between $0.65 and $0.45, with the lower boundary as critical support.
According to his tweet, Cardano’s key price targets include $2.00, $4.00, and $6.00, with major resistance levels at $1.17 and $2.92.
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.
