Key Insights
- Cardano price reclaims the $0.7427 level after breaking multi-month descending channel resistance.
- Weekly and 4H charts confirm bullish momentum with rising volume support.
- ADA targets $1.80 as historical pattern points to upward continuation.
After exiting a long-term downward-trending channel, Cardano price (ADA) has recovered the support level of $0.7427. It is a positive indicator of bullish re-establishment of the weekly candles. Targets now follow the previous price action, reinforcing the breakout prospects.
Cardano Price Breaks Key Resistance on Weekly Chart
On the weekly time frame, ADA has finished a breakout based on a descending channel that started in March 2024. A retest of the $0.7427 resistance zone, which has been resilient in the past weeks, is now followed by the breakout.
This zone has served as a resistance point in the unsuccessful rallies of ADA in the earlier months of the year. However, the recent price movement indicates a successful recovery to be used as support.
The channel breakout follows a period after the Cardano price consolidated between $0.5685 and $0.5913. These are past support levels where ADA tried to initiate upward movement. This action was followed by a powerful bullish engulfing candle, depicting an increase in momentum and market activity.
The strong breakout is also confirmed by the fact that a 1-hour volume pattern has significantly increased compared to the previous periods.
Given a breakout pattern, technical projections indicate a measured move target of about the $1.80 mark. It could be tested on a major psychological level and historical resistance of about three years. ADA must break through small resistance levels at $0.85, $1.05, and $1.20 before it may retest the high.
Bullish Continuation Confirmed on Lower Timeframes
The Four-hour Cardano price chart shows ADA is continuing in a very healthy uptrend. The price is presently holding above all major moving averages. All the 50, 100, and 200-period simple moving average (SMA) values of $0.6894, $0.6329, and $0.6112, respectively, are in bullish congruencies.
That shows the potential for a continued rise in value.
ADA has just reached a peak value of $0.7546 and is still consolidating. Price action exhibits increasing bottoms and tops and verifies a continuation pattern.
The Stochastic RSI and other momentum indicators show a bullish situation. The recent reading results in %K at 76.63 and %D at 62.28 suggest buyers are still in control. However, with the overbought state, there could be little consolidation.
As seen from the volume deltas, the Cardano bulls might be in control, boasting a net positive buy-side volume dominance.
Cardano Price is Up Over 3% in a Day
The Cardano price was at $0.7473 as of press time. It is a rise of 3.7% over a 24-hour period. Although the 24-hour trading volume reduced by a margin of 14.62% to a value of $1.32 billion, the total volume-to-market-cap ratio is 5.02%. It demonstrates high participation in terms of the asset valuation.
The present structure of ADA is analogous to a recent breakout that occurred in November 2023. Cardano price broke outside a falling wedge, transpired into an aggressive rise, and reclaimed the $0.74-$0.80 region.
Upon solidification, it rose above the range of $1.20, and it eventually reached the level of $1.50. A comparable formation is developing presently at the same price regions. In the past, those price regions were served to maintain price and also to shed it in various cycles.
The fact that such behavior seems to be a recurring trend of descending channels and resulting breakout rallies is a characteristic behavior of the ADA market.
In case of continuing the pattern, Cardano price may reuse the recent push towards $1 and even $1.80. However, the pace and duration may also be determined by the overall mood in the macro-market and the performance of altcoins in general.
The post Cardano Price Reclaims $0.74 Amid Bullish Weekly Breakout, Eyes $1.80 Target appeared first on The Market Periodical.
