Cardano (ADA) is making a gradual recovery after a slump earlier this month that saw its price drop to $0.33. As of today, ADA has climbed 1.8% over the past week and gained an additional 1.3% in the last 24 hours, bringing its current trading price to $0.3584.
This recent price uptick comes amid sluggish momentum across the broader cryptocurrency market, renewing investor interest in ADA. The big question: Could ADA be on the verge of rallying toward the $0.40 mark?
ADA’s Technical Setup Points To Bullish Breakout
A key factor driving optimism around ADA is the formation of an ascending triangle pattern on its daily chart. This pattern, often associated with bullish trends, suggests the potential for an upward breakout. ADA recently bounced off a major support zone within the triangle, a sign of increasing buying pressure.
An ascending triangle forms when an asset’s price creates higher lows, establishing a rising trendline, while resistance remains flat at the top. As the price continues to retest the resistance zone, the pressure builds. Once the asset breaks through the resistance, a rally typically follows.
In ADA’s case, the triangle pattern has emerged as it faces rejection between $0.27 and $0.33—a range that has now solidified as support. Historically, ADA’s price tends to rise after testing this support zone, and the recent rejection suggests that the asset could be gearing up for a move toward $0.40.
Strengthening Fundamentals Reinforce Positive Outlook
Alongside technical indicators, ADA’s fundamentals are also providing support for its recovery. Recent data from Santiment reveals a resurgence in retail interest. Although the number of active ADA addresses dropped after peaking at 137,000 earlier this month, it has since rebounded to 29,000—a sign that individual investors are re-engaging with the asset.
Further supporting ADA’s growth prospects, Coinglass data shows an increase in Open Interest by 4.72%, bringing the total to $231.29 million. While Open Interest saw a slight dip of 0.69%, the overall increase indicates that traders are positioning themselves for more price action, reflecting confidence in ADA’s near-term potential.
Can ADA Hit $0.40 Soon?
If the ascending triangle pattern holds and ADA breaks through resistance, the next target is likely $0.40. A favorable shift in broader market conditions could further accelerate this move.
For now, all eyes are on ADA’s ability to sustain the momentum and capitalize on growing retail interest. With both technical and fundamental factors aligning, Cardano appears ready to reclaim higher price levels—and possibly set the stage for an extended rally.
ADA’s steady recovery and encouraging technical patterns suggest the potential for further upside. If momentum holds, $0.40 could be the next critical resistance to watch. Investors and traders are keeping a close eye on this recovery, hoping for a breakout that could reignite bullish sentiment across the Cardano ecosystem.
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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