Investors have been asking whether the new bullish breakout could be a genuine trend reversal or a temporary bounce within a broader bearish structure.

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Cardano Price Breaks Key Resistance

After weeks of trading in a consolidation pattern, Cardano finally pierced through the upper resistance of a falling wedge, which typically is a bullish reversal formation.

(Click on image to enlarge)

Cardano Price Chart | Source: TradingView

The breakout occurred with a strong push above the $0.70 barrier, and Cardano has recently been seen trading at around $0.735, up approximately 5% on the day and 19% in the week.

Last Thursday’s price action ranged from a low of $0.672 to a high of $0.737, indicating strong intraday momentum. The volume accompanying the breakout also witnessed a noticeable uptick, reinforcing the potential significance of the move.

Momentum Builds as Cardano Clears Moving Averages

The cryptocurrency moved decisively above both its 50-day and 200-day Simple Moving Averages (SMAs). These long-term trend indicators turning bullish could be considered a positive sign for Cardano holders.

Historically, when a cryptocurrency asset reclaims these levels, it tends to trigger further buying interest from technical traders and institutions that rely on trend-following signals.

The 50-day SMA has been sitting around the $0.685 mark, while the 200-day SMA can be found slightly lower at the $0.663 level. As long as the price continues to comfortably rest above both, momentum will likely continue to favor the bulls.

RSI Indicator Points to Healthy Uptrend

Another critical signal is the Relative Strength Index (RSI), which has been seen at the 66.2 area on the daily chart. This level seems to suggest strong buying momentum, but not yet an overbought condition.

As long as the RSI remains below the 70 threshold, Cardano could still have room to climb before attracting significant selling pressure from traders watching momentum metrics.

Fibonacci Targets Signal Further Upside

If Cardano could hold onto its recent momentum, a series of upside targets could come into play based on historical breakout behavior and trend extension models.

The first major milestone would be around the $0.80–$0.82 range—a zone that could test how much conviction exists behind this rally. Should the cryptocurrency push through with volume, attention may shift toward the psychological $1.00 level, which hasn’t been seen since early 2023.

Beyond that, more ambitious traders have been starting to whisper about a possible return to the $1.10–$1.20 region, last visited before the market's macro downtrend took hold.

In more optimistic scenarios, long-term projections suggest Cardano could revisit the $1.80–$2.60 range, which would signal a full recovery of 2021’s bull market highs.

Short-Term Resistance and Risk Levels

Despite the bullish breakout, Cardano would have to contend with some near-term resistance. The $0.74–$0.75 zone would be the first key area to clear with conviction. This region aligns with past horizontal support/resistance, and it could act as a temporary ceiling if profit-taking kicks in.

If Cardano failed to hold above the $0.70 mark, a pullback toward $0.685 (the 50-day SMA) or even $0.66 (200-day SMA) could realistically take place. Below that, the $0.62 zone would serve as the next major support area, where the bottom of the previous wedge pattern converged.

A breakdown below the $0.60 level would invalidate the bullish thesis and suggest a return to accumulation or even fresh lows, depending on broader market conditions.

Market Sentiment and Macro Factors

Sentiment around Cardano has been improving in recent days, aided by broader optimism in the altcoin sector.

However, investors should remain cautious: macroeconomic uncertainties and Bitcoin dominance could still sway short-term price action. A sudden shift in Bitcoin’s trajectory could potentially overshadow Cardano’s technical setup.

That said, Cardano has long been seen as a “slow builder” in the ecosystem, and its recent technical strength may reflect growing confidence in its roadmap, staking model, and smart contract ecosystem. 

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