Cardano Returns to the Spotlight

After months of consolidation, Cardano has regained attention among the most followed cryptocurrencies. What do the charts and dynamics reveal about ADA’s prospects?

Summary

• A breakout expected for months for Cardano (ADA)
• Technical indicators: momentum and correction risk
• What to expect in the coming months? Scenarios and strategies

A Breakout Awaited for Months for Cardano (ADA)

Recently, the sentiment around Cardano (ADA) has shifted decisively. After weeks of sideways trading between $0.60 and $0.74, the crypto has shown strength, breaking historical resistance near $0.75 and aiming for the psychological threshold of $1.

This anticipated breakout, supported by rising trading volumes, is influenced by sector news (including ETF rumors) and solid on-chain fundamentals. The Total Value Locked (TVL) on Cardano has increased by over $100 million in the last month, signaling a burgeoning DeFi ecosystem.

Graphically, ADA formed a “symmetrical triangle” after the strong rally in June and July, which often leads to an impulsive movement in the main trend’s direction. Recently, a bullish breakout occurred with a daily close above $0.75 and a surge in volumes, reviving many traders’ expectations.

Key Levels to Monitor:
– Main Support: $0.74-$0.75 – now a new base
– First Resistance: $0.87-$0.90 – target for continuation
– Psychological Resistance: $1.00 – potential profit-taking area
– Extended Bullish Area: $1.20-$1.50 – medium-term projection

Technical Indicators: Momentum and Correction Risk

The main indicators present a bullish situation with caveats. The RSI has surpassed 70, indicating overbought conditions. However, ADA has historically sustained high RSI levels during strong bull trends. A minor correction towards new support at $0.75 could be needed to alleviate excessive speculation.

The MACD confirms positive momentum; the MACD line has crossed above the signal on daily and weekly charts, suggesting further bullish potential. Volume has also surged during the breakout, confirming its legitimacy.

On-chain Fundamentals:
– TVL exceeds $340 million, up over 40% since June
– Active addresses rose by 38%, indicating real interest
– Upcoming hard fork “Plomin” expected to improve governance and developer tools, enhancing protocol competitiveness

What to Expect in Coming Months? Scenarios and Strategies

If momentum persists, ADA may stabilize above $0.80 and aim to exceed $1.00 by fall. If positive ETF news and growing DeFi continue, ambitious targets of $1.20-$1.50 could be reached by year-end.

Analysts project Cardano to align with Ethereum and Solana’s performance, but correction risks should not be ignored. A high RSI and declining volumes could trigger profit-taking, potentially retracting towards key supports around $0.75 and $0.65.

Though unlikely, a negative scenario could arise from macroeconomic shocks, potentially sending ADA back to $0.60-$0.65.

Strategic Recommendations:
– Optimal Entry: Await a small retracement to $0.75-$0.78
– First Target: $0.87-$0.90, consider partial profiting
– Second Target: $1.00-$1.20, use a trailing stop to protect gains
– Stop-Loss: Below $0.74, if it returns to the prior resistance.