Recent price changes for Cardano (ADA) indicate a potential reversal after a prolonged decline. The asset has breached the resistance level in the $0.70–$0.72 range, which could pave the way for an upward movement.
Exit from the Descending Channel
Cardano (ADA) has exited a descending channel that has been in place since December 2023. The three-day chart shows the asset forming consistent lower highs and lower lows throughout this period. However, recent price action has pushed ADA above the upper boundary of the channel.
Strong Market Momentum
Today's intraday trading data supports the bullish breakout. ADA rose to a high of $0.7381, posting a 2.68% gain within the session. The price increased steadily throughout the evening hours, backed by a surge in trading volume.
Breakout Confirmation for Further Growth
To maintain the breakout, Cardano needs to continue trading above the important $0.70 value. If the price holds above this level, analysts anticipate potential movement towards the $0.90–$1.20 range. However, if ADA retraces below this trendline, a retest of former support zones may occur.
The next couple of sessions will be crucial in confirming the breakout and determining short-term orientation. Traders are watching volume, momentum indicators, and price structure closely.
