Cardano’s native token, ADA, is currently experiencing a minor pullback following its bullish breakout on March 11, 2025. Despite the short-term dip on the four-hour chart, technical indicators suggest that ADA may be gearing up for a significant rally, with a bullish inverted head and shoulders pattern forming on the same timeframe.
Cardano (ADA) Technical Outlook and Key Levels
Technical analysis reveals that ADA maintains a bullish structure on both the four-hour and daily timeframes. The asset has recently bounced off a critical support level at $0.65, signaling the potential for an upward trajectory. Market analysts suggest that if ADA breaks above the $0.75 resistance and secures a four-hour candle close above this level, a 9% surge toward $0.80 could follow. Beyond this, a sustained bullish push may pave the way for a 40% rally, potentially driving ADA toward the $1.13 mark in the near future.
Market Indicators and Price Momentum
While ADA recently dipped below the 200 Exponential Moving Average (EMA) on the daily chart—suggesting a lingering downtrend—its Relative Strength Index (RSI) is showing signs of recovery, a bullish signal for traders and investors. At present, ADA is trading near $0.72, recording a 2% increase in the last 24 hours. Additionally, a 20% surge in trading volume indicates growing interest and participation in the asset.
Traders’ Positions and On-Chain Insights
According to data from Coinglass, traders appear to be heavily leveraged as ADA inches closer to the neckline of its bullish pattern. On-chain metrics indicate that bulls have accumulated $12 million worth of long positions at the $0.70 support level, anticipating a strong price rebound. Meanwhile, bears are concentrated around the $0.75 resistance level, holding $9 million in short positions.
Also Read: Cardano (ADA) at Risk: Will It Hold Key Support or Face a Major Breakdown?
With the combination of bullish technical patterns, rising trading volume, and increased leverage among traders, ADA appears primed for a significant breakout in the coming days. If the asset successfully breaches key resistance levels, a sustained uptrend could propel it toward new local highs, reaffirming Cardano’s bullish outlook.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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