Cardano is making significant strides in the market as bullish momentum continues to build, indicating the potential for a substantial upward move. The price action is steadily moving towards a critical resistance zone, with buyers demonstrating renewed strength. If the current levels of momentum are sustained, ADA’s price could potentially reach the $1.20 mark, sparking increased interest and driving further gains. With improving sentiment and increasing volatility, ADA’s short-term trajectory appears to be on course for a continuation towards higher valuation levels.
The ADA price is currently consolidating just below the $0.8 to $0.85 resistance level and the trendline, following a breakout from a prolonged bearish trend. A confirmed breakout from this consolidation phase could potentially trigger a move towards $1.50. The question on everyone’s mind now is whether this breakout is imminent.
On-chain data suggests that traders are becoming more optimistic about Cardano, as open interest in ADA has reached an all-time high. Since the breakout in November 2024, open interest has been steadily increasing and is now approaching $1.80 billion. This surge in open interest indicates a growing bullish sentiment among traders, which could serve as a bullish signal for ADA’s price.
As for the immediate future, the Cardano price appears to have completed a correction phase following the breakout, signaling the start of a bullish wave. Technical analysis indicates that the ADA price has broken out of a descending parallel channel and is now showing signs of a potential breakout. The 50/200-day moving averages are on track for a bullish crossover, known as the Golden Cross, which has previously resulted in a significant price increase. Additionally, the MACD indicator is also showing a bullish crossover, suggesting that buying pressure is building up.
Based on historical chart patterns and current market conditions, Cardano’s price is poised for a breakout above $0.9 in the near future. Securing the $0.92 level could potentially pave the way for a larger breakout above $1, with a target of $1.12 in sight. Overall, Cardano’s outlook appears positive, with the potential for further gains as sentiment improves and market conditions remain favorable.