With Bitcoin maintaining its position above $83,000, Cardano (ADA) is positioning itself for a potential bullish breakout after a prolonged range-bound movement. The cryptocurrency has been fluctuating in market capitalization, alternating positions with Dogecoin as the eighth-largest digital asset. At present, ADA holds a valuation of $24.99 billion, and its consolidation phase may soon conclude, setting the stage for a potential surge past the critical $1 mark.
Cardano’s Range-Bound Movement Nears Breakout
A closer look at the 4-hour price chart reveals that Cardano has been trading sideways, confined between $0.66 and $0.77. The Fibonacci retracement levels reinforce the importance of this range, with the 38.2% and 50% levels aligning with these price points, respectively. Additionally, the Bollinger Bands have been tightening, reflecting compressed momentum and a buildup toward a significant move.
Currently, ADA faces resistance at the 20-day Simple Moving Average (SMA), acting as the midline of the Bollinger Bands. However, technical indicators hint at a bullish reversal. The MACD and signal lines are on the verge of a bullish crossover, signaling potential upside momentum. Despite this, the moving averages remain in a negative trend, suggesting that bullish strength is still gaining traction.
Social Sentiment at a 4-Month High
While Cardano’s price action remains in consolidation, on-chain data suggests growing optimism among investors. According to Santiment, social sentiment for ADA has reached a four-month high. The surge in positive commentary comes in response to the U.S. Securities and Exchange Commission’s (SEC) classification of ADA’s use case as “smart contracts for government services.”
🥳 Specific altcoins like Cardano are seeing high positive sentiment on social media. Aided by the fact that the SEC classified $ADA's use case as "smart contracts for government services", the altcoin's community has pushed up bullishness to its highest rate in over 4 months. pic.twitter.com/viUVgjYNAX
— Santiment (@santimentfeed) March 19, 2025
Currently, for every negative comment on Cardano, there are 3.5 positive mentions—marking the most optimistic outlook since late October to early November. This spike in sentiment could serve as a catalyst for increased demand and a potential breakout.
Key Price Targets for ADA
If bullish momentum materializes, ADA could break above $0.77 and challenge the 78.6% Fibonacci level, surpassing the psychological resistance at $1. On the downside, key support levels remain at $0.66 and $0.53.
Also Read: Cardano’s Comeback: Can ADA Reclaim Its Top 3 Crypto Status in 2025?
As Cardano inches toward a potential breakout, investors remain watchful for confirmation of a bullish rally.
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.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
