- Cardano has surged to $0.6784, breaking key Fibonacci levels, signaling a potential breakout toward $0.83.
- The derivatives market shows bullish sentiment, but a sharp move could trigger significant liquidations.
Cardano Resilient Rebound: Breaking Key Fibonacci Levels
Cardano (ADA) has staged an impressive comeback, with its price climbing to $0.6784, reflecting nearly a 4% surge. This recovery has not only lifted ADA above the crucial $0.67 high-volume zone but also pushed it beyond significant Fibonacci levels, hinting at a potential breakout.
The rally in Cardano’s price has been fueled by its strong bounce from a support trendline on the 4-hour chart. This bullish move aligns with the 50% Fibonacci level, highlighting renewed buying interest among traders. Notably, the price has also surpassed the 61.80% Fibonacci level at $0.6732, confirming a V-shaped reversal pattern and a falling wedge breakout.
Key Technical Levels and Bullish Indicators
The breakout from the high-volume zone, which had served as robust support in late April, signals a positive shift in market sentiment for Cardano. With three consecutive bullish candles, ADA is now eyeing the next major resistance at $0.7292. This critical resistance level has consistently capped Cardano’s gains since late April.
Adding to the optimism, the MACD indicator shows a positive crossover, reinforcing the bullish outlook. If the recovery momentum continues, ADA could target the 1.272 Fibonacci extension level at $0.8372.
Derivatives Market Highlights Potential Volatility
In the derivatives market, Cardano’s Open Interest remains steady at around $735 million, with a positive funding rate of 0.0065%. This indicates underlying bullish sentiment among traders.
However, the liquidation map presents a double-edged scenario. A surge in ADA’s price to $0.692 could trigger short liquidations worth $4.46 million, including $427K from Binance, $232K from OKX, and $514K from Bybit. Conversely, a decline to $0.664 could result in $5.75 million in long liquidations.
Cardano Price Outlook: Can Bulls Maintain Momentum?
As Cardano’s price continues to recover, traders should keep a close eye on the $0.7292 resistance level and the $0.664 support. A successful breakout could drive ADA towards $0.83, while a failure may lead to a retest of lower levels. The bullish momentum appears strong, but caution remains key amid the volatile market conditions.”)
