Summary:
– ADA has surpassed $0.85, turning former resistance into support, paving the way for a potential climb to $1.60.
– Futures open interest has surged to $1.7 billion, showcasing heightened trader engagement.
– Long-term chart patterns hint at ADA potentially replicating previous rallies, possibly moving toward the $2.40 mark.
Cardano Breaks Out of Extended Pennant Formation
Cardano (ADA) has exited a prolonged pennant pattern after months of fluctuating within descending trend lines. The breakout, which began in late 2024, was confirmed on the 2-day chart. ADA has since retested the $0.85 level, now serving as short-term support. Currently trading at $0.8635, ADA has risen 0.35% in the last 24 hours and over 15% in the past week. Analyst Jonathan Carter suggests ADA could target $1.03, $1.17, $1.33, and $1.60, aligning with historical price actions and high-volume zones.
A tweet from Jonathan Carter (@JohncyCrypto) highlighted the breakout and potential price targets, emphasizing continued upward movement.
The Relative Strength Index (RSI) is trending upward but remains below the overbought level, indicating room for further price increases.
Historical Patterns Indicate Further Price Gains
A broader ascending channel, in formation since early 2023, provides additional technical backing. Historical data from Bitcoinsensus shows significant price escalations from this structure. Previous rebounds from the lower channel line led to 200% and 300% increases. If the current trend persists, ADA may aim for $2.40, potentially surpassing long-term resistance levels. Dan Gambardello also noted ADA’s readiness to breach its long-term resistance in the current market cycle.
Increased Futures Activity and Market Engagement
CoinGlass data reveals ADA futures contracts’ open interest has reached a record $1.7 billion. This increase in market participation reflects stronger involvement from both retail and institutional traders. Recent legislative changes in the U.S., including the Genius and Clarity Acts, are seen as a move toward clearer crypto regulations, encouraging more significant market players to enter the ADA space.
This article first appeared on CryptoPotato.
