Cardano (ADA) has recently surged back into the spotlight as its price climbs toward the coveted $1 mark. Trading at $0.82, ADA has seen a notable 4.4% increase, with the price up nearly 24% from a low of $0.64 recorded just last week, according to CoinMarketCap data.
On May 9, Cardano broke through a significant resistance level at $0.75, a zone that had held the cryptocurrency in place since March 9. The daily closing price reached $0.7774, surpassing the 23.60% Fibonacci retracement level of $0.7593, signaling the potential for further upward momentum.
The price action during this period of sideways consolidation has formed an inverted head and shoulders pattern, often regarded as a technical indicator of a trend reversal. This breakout suggests a potential price target of $1.08, which aligns with the 50% Fibonacci retracement level. Should this target be reached, ADA could see an additional 30% surge.
Moreover, ADA has recently moved above the critical 200-day Exponential Moving Average (EMA), reinforcing its long-term bullish outlook. The 50, 100, and 200 EMAs are all turning upward, with the possibility of a crossover soon, further indicating a shift toward positive momentum.
In the futures market, open interest in ADA has risen by 2.76%, reaching $969 million, according to Coinglass data. The funding rate stands at over 0.011%, pointing to an increasing number of long positions. On Binance, 75% of ADA traders are betting on higher prices, reflecting growing confidence in the asset’s future performance.
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