The price of Cardano (ADA) recently broke out of its long-standing descending channel, rising above the 200-day moving average, creating a positive market sentiment.
Breakout in Cardano Price Chart
ADA's price managed to overcome a significant bearish trend, having been trapped in a descending channel. This breakout is a significant event for the daily chart in the last month. “This breakout has relieved many investors who were waiting for this moment in ADA.” (CITE_NA) The breakout and sustained movement above the 200-day EMA serves as a long-term indicator of an upward trend.
Consolidation Near $0.72
Despite the bullish signals, ADA's price is currently consolidating around $0.72, aligning with a broader market pullback. “Despite the consolidation, no critical support levels have been broken, which confirms that the uptrend remains structurally sound.” (CITE_NA)
Accumulation Phase Could Drive Next Leg Higher
The current price zone between $0.70 and $0.72 may act as a re-accumulation zone. Market participants may use this phase to regain strength before making another push towards the resistance level of $1.10. If accumulation continues, it may lead to higher levels in the ADA/BTC pair, indirectly supporting the ADA/USD price.
The surge in Cardano's price after breakout along key indicators creates a positive mood, despite the current consolidation. Investors may expect further growth if support continues to manifest.
