- Cardano is showing strong bullish momentum, with a potential breakout above $0.71 that could drive its price up to $0.85, fueled by rising TVL and positive trader sentiment.
- Despite mild resistance near the 200-day EMA, the majority of traders remain optimistic, signaling a possible 18% rally ahead.
Will Cardano Breakout Spark an 18% Rally?
Cardano (ADA) is back in the spotlight as traders eye a potential 18% price surge that could push ADA up to $0.85. The key trigger? Closing a four-hour candle above the crucial $0.71 resistance level. After months in a downtrend, ADA has flipped bullish momentum, capturing the attention of crypto traders and analysts alike.
On-chain data shows that 72.3% of ADA traders are currently holding long positions, betting on further upside. Meanwhile, only 27.7% remain short, indicating a clear tilt toward bullish sentiment. This optimism is reinforced by recent price action, where ADA has rallied over 6.5% in just 24 hours and trading volumes jumped by 45%, signaling fresh investor interest.
TVL Surge Signals Growing On-Chain Activity
A vital factor behind ADA’s bullish outlook is its soaring Total Value Locked (TVL). DEX Hunter, a decentralized exchange aggregator, recently highlighted that Cardano’s TVL is climbing steadily toward a new all-time high. This surge in TVL is especially significant because it often signals increased usage and confidence in the Cardano ecosystem, which historically supports price appreciation.
This rise in TVL follows ADA’s breakout from a long-standing descending trendline, a key technical resistance that had capped the price for some time. The breaking of this trendline signals renewed strength and sets the stage for a potential major rally.
Technical Resistance and What Comes Next
While ADA’s recent momentum is encouraging, the path to $0.85 is not without hurdles. The price currently faces resistance near the 200-day Exponential Moving Average (EMA) on the four-hour chart, aligned with a horizontal resistance zone expected to remain relevant through June 2025.
Historically, Cardano has struggled at this level, experiencing a 10% pullback the last time it was tested. However, the breakout from the descending channel pattern combined with positive trader sentiment offers hope for a successful breach this time.
A leading crypto analyst noted that a sustained close above $0.77 on the three-day chart would confirm a bullish breakout, likely igniting a stronger upward move.
Bullish vs. Bearish Scenarios
If ADA manages to close above $0.71 on the four-hour chart, it could accelerate toward $0.85, representing an 18.5% gain from current levels. But failure to hold above $0.71 could prompt a correction of roughly 10%, dragging prices down toward $0.62.
Current market data, including a Binance long/short ratio of 2.61, strongly favors the bulls, with most top traders betting on an upward move. Despite some mild selling pressure, the overall sentiment remains bullish as Cardano builds momentum for what could be a significant rally.
Cardano’s journey to $0.85 hinges on breaking and sustaining key resistance levels amid rising TVL and positive trader sentiment. For traders, watching the $0.71-$0.77 range will be critical in the coming days — a breakout could trigger a swift 18% surge, while a rejection may lead to a short-term dip. ADA’s evolving technical and on-chain landscape sets the stage for an exciting chapter in its price story.
