Cardano ($ADA ) has broken through a local trendline and is targeting a recovery above $0.72. Growing institutional interest and rising open interest in derivatives suggest a potential breakout to $0.837.
As altcoins gradually regain momentum, Cardano seems poised for a bullish rebound this week. On Wednesday, ADA rose nearly 1%, triggering a trendline breakout on lower timeframes. Will this breakout help Cardano re-establish a bullish trend?
On the 4-hour chart, Cardano shows signs of a bullish trend after failing to maintain above the resistance level of $0.837. Following several highs formed last month, ADA fell nearly 10% last week.
The decline stabilizes above the support level at $0.648, potentially supported by the psychological level of $0.65. Recovering nearly 2% in the short term this week, Cardano has broken through a local resistance trendline formed by higher lows during the recent pullback.
Currently, ADA is testing the 50-period EMA at $0.70, aiming to continue its recovery. However, the 100-period and 200-period EMAs near $0.72 present the next significant resistance zone. Therefore, despite the trendline breakout, ADA still faces multiple key resistance levels.
Despite these overhead obstacles, the RSI reflects that bullish momentum is strengthening, having risen above the midpoint. If Cardano can break through the $0.72 level, the likelihood of bouncing back to the resistance level at $0.837 will increase.
Conversely, the key support level remains at $0.648, followed by a secondary support level of around $0.60.
CEO-level meeting between the Cardano Foundation and Franklin Templeton
Further enhancing the bullish sentiment is the recent meeting between Cardano Foundation's CEO Frederick Gregaard and Franklin Templeton's CEO Jenny Johnson, whose company manages $1.6 trillion in assets.
