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.
