Key Takeaways
- Cardano (ADA) breaking and closing above $1.1 would signal strong bullish price action towards the $2 mark.
- Despite recent market uncertainty, ADA has demonstrated strength, holding above the $0.5 support zone.
- ADA price trading below its 50-day and 200-day EMAs remains key interest for bears as the price develops.
Cardano (ADA) has remained in a constant price range for weeks since its price rally to a high of $1.3 in the past three months, as the price of ADA suffered a significant price crash towards a low of $0.65 due to the market uncertainty affecting investment into altcoins.
Despite the market looking unbearable in price action the last few weeks, Cardano (ADA) has shown strong resilience not to break below its key region of support around $0.45 as ADA bulls rallied its price towards a high of $1.1.
Although this price rally was applauded around the Cardano (ADA) ecosystem, it was short-lived. The price suffered another decline towards $0.62, holding its price strong as it continues to demonstrate a range price movement for weeks now.
While this price movement has persisted, top crypto analysts have taken to their X accounts to speculate a bullish price action developing for ADA as the price is expected to break out with price rallying towards a high of $2.
Cardano (ADA) Sees Bullish Breakout And Retest
According to top crypto experts, VipRoseTr on X hinted that the price of Cardano (ADA) broke out of its bullish wedge, signaling a potential price reversal to the upside. As the price retested its neckline, it confirmed the price breakout.
VipRoseTr further stated that this level is crucial for ADA’s price. If the price of Cardano (ADA) maintains its strong bullish momentum after the breakout, we could see the price rally to a new yearly high towards a region of $2 if its price is accompanied by strong volume and market structure confirmation.
Strong volume and market structure shift are key criteria needed for a successful price breakout to avoid entering fakeout trades, as this could affect investors and traders psychologically.
For the price of ADA to rally as expected, it needs to break above its key resistance of $1.1 with strong volume to the upside. This will give the price more room to rally towards the previous yearly high of $1.3 and a subsequent price rally towards $2.
Greg_Miller has also shared his analysis on his X handle, suggesting that a breakout for ADA to the upside of $0.77 could cause the price to explode as it faces a key resistance of $1.1.
ADA Continues To Show Strength
Source – ADA 1D Price Chart From TradingView
Although ADA continues to trade above its key support of $0.5, the price currently trades below its 50-day and 200-day EMAs, acting as short-term resistances for ADA prices, with a break and close above these regions could see more bullish price action for Cardano (ADA).
If the price of Cardano fails to break above $0.77, we could see the price trade into the key support zone of $0.5, which would allow bears to watch ADA price action and dominate the price to lower regions if this area of support fails.
