Cardano's Price Poised for Potential Surge as ADA Maintains Crucial Support Level at $0.71
Cardano's (ADA) current trading price of $0.71 finds solid footing, rooted in a multi-year bullish structure that crypto chartist Maelius believes might be preparing for a bullish ADA breakout. Despite a 45% retracement from its 2024 peak, ADA clings vigorously to its long-term rising trendline, a line that's been a constant since the 2020 Covid crash.
Recently, ADA has painted a higher low (HL) above $0.57, making a stand within a crucial demand zone. The technical landscape now leans towards the gradual rebuilding of momentum, stirring questions among traders: Is Cardano about to ramp up?
Cardano's Rising Support Zone and Sequence of Higher Highs and Lowers
Cardano's weekly structure reveals some intriguing details. Price rebounded from the demand band ranging from $0.57 to $0.78, reclaiming the 50-week exponential moving average (EMA) at approximately $0.66. This EMA was a significant catalyst for the ADA bullish surge in March 2024, pushing ADA towards $1.31. Now, the same level hunkers down as support, further strengthening the argument for another bull run.
Veteran analyst Maelius notes that the Cardano chart pattern sticks to a series of higher highs and higher lows, an arrangement highly conducive to a sustained rally. Traders pay close attention to whether the ADA RSI indicator can pierce through the downtrend line from the March high.
Momentum Metrics Hint at Imminent ADA Bullish Breakout
Though ADA's technicals are promising, momentum indicators are yet to offer clear signs of an ADA bullish breakout. The Cardano RSI indicator currently lingers around 49, erecting a falling wedge pattern. Typically, such patterns foreshadow impending breakout moves once the resistance is breached. This RSI setup shares similarities with historical patterns seen ahead of significant ADA uptrends in 2020 and 2023. At the same time, the Wave-Trend Oscillator is on the brink of a bullish cross, with its fast and slow lines poised to intersect. If the cross materializes, it would bolster the bullish argument even further.
Chart 1- ADA/USD Live Price, published on TradingView, April 30, 2025.
With the communion of technical signals, the market finds itself at the edge of another breakout phase. As ADA remains above the 50-week EMA and respects higher lows, bullish momentum could surge quickly if indicators align. The timely query remains: Is Cardano about to make a comeback? Volume and pattern confirmation will ultimately serve as the deciding factors in the days ahead.
Key Obstacle: $0.81 Bars the Path
Looking forward, ADA must conquer resistance at $0.81, a significant critical level marking the March high swing. If succeeded, the next major targets stretch towards $1.31, the December 2024 all-time high, and the upper channel around $1.50. Remaining steadfast above $0.66 and within the rising channel propels the likelihood of an ADA bullish breakout. Both the Cardano RSI indicator and Cardano chart pattern underscore growing buyer pressure. Confirmation through volume and trend indicators would corroborate the bullish thesis.
Cardano's Future: A Bull Run in the Making?
Cardano Bulls reign supreme as long as weekly closes maintain their position above the $0.57 demand floor and ADA continues its historical uptrend. Cardano's structure leans towards loftier levels, with momentum oscillators teetering on the brink of a turn and a textbook ADA chart pattern unfolding. Multiple bullish signals converge, with traders anxiously waiting for confirmation. Is Cardano about to rally? The answer may soon become apparent if technicals deliver a confirmed ADA bullish breakout.
Additional Factors Supporting a Bullish Outlook (Enrichment Data)
- Institutional Interest: Institutional investors' large spot purchases hint at deepening interest, ready to fuel ADA's recovery and potentially boost prices[1]. Despite temporary sell-offs by short-term traders, the increased volume attracts a great deal of market attention from major players.
- Macroeconomic Developments: Investors constantly scrutinize macroeconomic shifts, such as monetary policy changes or diminishing inflation rates, which could spark risk assets like ADA[1].
- Political Developments: Statements from prominent figures, such as former US President Donald Trump, are speculated to serve as catalysts for bullish sentiment[1].
- ETF Expectations: Anticipation surrounding ADA-related Exchange Traded Funds (ETFs) could induce a rise in momentum and potential price gains[3].
Additional Technical Indicators reinforcing a Breakout (Enrichment Data)
- Golden Cross Formation: The impending Golden Cross formation on ADA's Exponential Moving Average (EMA) lines could support a breakout if resistance levels are surpassed[2][3].
- BBTrend Flip: The Bollinger Band Trend (BBTrend)'s shift into positive territory signifies growing volatility conducive to a bullish trend[2]. This change signals waning selling pressure and the commencement of a recovery phase.
- Falling Wedge Pattern: Technical analysis highlights a Falling Wedge pattern, known historically to precede notable upward price movements. Once key resistance levels are breached, this pattern might instigate rallies of 261-300%[4].
- MACD and RSI Indicators: The Moving Average Convergence Divergence (MACD) gaining momentum within the bullish zone and the Relative Strength Index (RSI) moving beyond the 50 level suggest positive short-term momentum[4].
- In the context of Cardano's current trading price, a multi-year bullish structure, observed by crypto chartist Maelius, suggests a potential bullish ADA breakout.
- ADA's recapturing of the 50-week exponential moving average at approximately $0.66 significantly contributed to the crypto's bullish surge in March 2024.
- The Cardano RSI indicator, currently forming a falling wedge pattern, suggests an impending breakout once the resistance is breached.
- If the Wave-Trend Oscillator's fast and slow lines intersect, it would strengthen the bullish argument further, offering a sign of an imminent ADA bullish breakout.
- The RSI setup shares similarities with historical patterns seen ahead of significant ADA uptrends in 2020 and 2023.
- In order for the ADA bullish breakout to be confirmed, Cardano must conquer the resistance at $0.81, a significant critical level, and maintain a position above the 50-week EMA and the rising channel.
