Cardano hovers above $0.70 after a 14% weekly surge, forming a bullish pattern. Will a breakout above $0.74 propel it to $1?
Following a strong recovery last week, Cardano is holding its ground at $0.70. Over the past week, the price surged nearly 14%, signaling a bullish reversal.
However, the uptrend continues to face resistance from the overhead supply zone near $0.74. This area shapes a rounded bottom pattern that may define the future trend. Will a bullish breakout from this pattern push Cardano toward the $1 mark?
Cardano Price Eyes New Upswing Beyond $1
On the daily chart, Cardano’s price has bounced off a local descending support trendline for the fourth time since December 2024. This trendline is at the 23.60% Fibonacci level at $0.53.
As bulls defend the psychological support at $0.50, the ADA price trend forms a rounding bottom reversal. The neckline of this pattern lies at the $0.74 supply zone.
Currently, ADA is trading between the 38.20% Fibonacci level at $0.66 and the neckline. With multiple doji candles appearing, the short-term trend remains uncertain.
However, the broader market recovery and improving sentiment will likely support a breakout rally. The MACD and signal line maintain a positive trajectory, reinforcing the bullish outlook.
As the average line moves into positive territory, the momentum indicator also supports the potential for a breakout. Furthermore, a breakout rally would confirm a trend reversal via the Super Trend indicator, which currently places the red line at $0.72.
Based on Fibonacci levels, a breakout from the rounding bottom pattern could lead to a bullish move toward the overhead supply zone near $1.17. On the downside, critical support levels lie at $0.66 and $0.53.
Analyst Spots Potential Breakout Run in ADA Price to $0.88
Crypto analyst Ali Martinez highlights a potential breakout rally in Cardano, noting a descending channel pattern in the 3-day price chart.
Currently, the recovery run is testing the resistance trendline, which could signal the beginning of a significant breakout. According to Martinez, this breakout may lead to a smooth climb toward $0.88.
However, if the price fails to surpass the rising trendline, a pullback to the mid-line near $0.63 is likely.
Long Positions Rise Amid Breakout Rally Chances
As Cardano nears a potential breakout, rising optimism in the derivatives market has led to an increase in long positions. According to CoinGlass, long positions account for 49.13%, with a long-to-short ratio of 0.9658.
Although short positions still slightly dominate, the bulls are gradually gaining momentum. Compared to a 47.95% share of long positions on April 27, bullish sentiment is on the rise.
This trend supports the possibility of a major reversal in Cardano. Notably, open interest in Cardano has risen by 1.72% to reach $796.89 million, with a positive funding rate of 0.0046%.
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.
