Cardano (ADA) has surpassed a resistance level and set new targets. The increase in futures contract volumes also indicates trader interest.
Breakout from Multi-Month Pattern
Cardano (ADA) has emerged from a prolonged pennant formation following several months of trading between declining trendlines. The pattern, which started in late 2024, concluded with a clear breakout confirmed on the 2-day chart.
After the breakout, ADA retested the $0.85 level. This area, formerly resistance, is now acting as short-term support. At the time of writing, ADA trades at $0.8635, reflecting a 0.35% rise in the last 24 hours and more than 15% in the past week.
Analyst Jonathan Carter shared that ADA may now target several upside levels: $1.03, $1.17, $1.33, and $1.60. These zones align with past price action and high-volume areas on the chart.
Historical Structure Supports Upside
Additional technical structure emerges from a broader ascending channel that has been forming since early 2023. According to Bitcoinsensus, ADA has seen significant price increases from this setup before. The last two bounces from the lower channel line resulted in 200% and 300% surges.
If the current trend holds, ADA may be on a path towards $2.40, following the same structure. Dan Gambardello also noted that ADA appears ready to move through its long-term resistance area and reach higher price zones in the current market cycle.
Rising Futures Interest and Market Participation
Data from CoinGlass shows that open interest in ADA futures contracts has reached $1.7 billion, setting a new record. The rise in market activity signals strong engagement from both retail and institutional traders.
Recent changes in U.S. legislation have eased the situation regarding its policy towards crypto. The Genius and Clarity Acts are viewed as a step toward clearer regulations, which can contribute to bigger players entering ADA and other cryptocurrencies.
The breakout from the $0.85 level and the rising interest in futures contracts indicate positive market sentiment for Cardano (ADA). Technical analysis suggests potential for further growth.
