Cardano (ADA) is showing signs of renewed strength after bouncing sharply from the $0.72 support level. With Bitcoin holding strong above $109,000, ADA bulls are eyeing a breakout toward the $0.84 resistance — last seen earlier this month.
Cardano Price Analysis: Momentum Builds
Cardano is up 11% this month, driven by strong demand at lower levels and improving market sentiment. On the 4-hour chart, ADA shows a decisive bounce from the 200-period exponential moving average (EMA) at $0.74 — a key technical support that confirms bullish interest around $0.72.
Currently trading near $0.7745, ADA is consolidating just below major resistance. This price behavior suggests strength and a potential breakout as momentum indicators flip positive. The MACD has formed a bullish crossover, and the histogram is showing increasing upward momentum — all pointing to a growing bullish trend.
Adding to this optimism, the alignment of the 50-, 100-, and 200-period EMAs supports a longer-term uptrend. If ADA breaks above the $0.77 barrier, the next likely target is $0.84 — a level tested on May 13 and May 23.
ADA Poised for Breakout as Bulls Regain Control
Cardano’s bullish setup is reinforced by a resilient structure despite market-wide consolidation. If ADA holds above the 200-day EMA and breaks above the short-term resistance zone, the next leg up could take the price toward $0.90 and potentially higher in the coming weeks.
On the downside, support at $0.72 has proven solid, limiting bearish risk and setting the stage for a continued upward climb.
Derivatives Market Shows Rebound Potential
While the ADA derivatives market recently showed signs of cooling off, it may actually indicate a reset phase before a fresh rally. According to CoinGlass, open interest remains elevated at $897 million — signaling that traders are still actively positioned in the market.
Although options volume temporarily declined, the long/short liquidation ratio suggests a shakeout of weak hands, paving the way for stronger bullish positioning. Funding rates remain positive, reflecting continued confidence among leveraged traders.
Outlook: Can ADA Break $0.84?
With technical indicators turning bullish, strong support at $0.72, and growing market participation, ADA is well-positioned for a breakout. If bulls push past the $0.77 resistance, a re-test of $0.84 appears likely — with a chance of climbing higher as sentiment improves across the broader market.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed are those of the author and do not necessarily reflect the opinion of The Crypto Basic. Always conduct your own research before making investment decisions.
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