Cardano (ADA) price jumps past key resistance levels, forming a bullish falling wedge breakout. Is a 40% rally to $1.11 on the cards?
For the second consecutive day, Cardano is leading the altcoin rally with a massive intraday surge of 11.77%. The bullish reversal in Cardano suggests a potential breakout rally.
With a spike in bullish momentum, Cardano has broken through the critical $0.80 resistance. Will this breakout push ADA toward the $1 psychological mark? Let’s explore.
Cardano Price Analysis: Breaking Key Resistance Levels
In the daily chart, the ADA price trend reveals a short-term resistance trendline from early 2025. However, a long-standing support trendline has helped the recent pullback regain bullish strength.
Since the start of February, ADA has dropped from $0.9428 to a bottom of $0.6816. This accounted for a drop of 27.70% in the early nine days of February.
With eight consecutive red candles, the price tested the local support trendline. Furthermore, the trendlines in action create a falling wedge pattern.
However, with a bullish start this week, the two consecutive positive candles in Cardano have overcome the five days of downfall with a jump to challenge the overhead trendline. Along with the trendline, ADA also faces a higher price rejection from the 23.60% Fibonacci level at $0.8127.
After a 24-hour high set at $0.8131, Cardano currently trades at a market price of $0.7927. Additionally, with the massive intraday surge, Cardano aims to surpass the bullish breakout of a falling wedge pattern.
Supporting the upside, the MACD and signal lines are nearing a positive crossover, while bearish histograms are losing intensity. Additionally, the DMI indicator shows a crossover in the VI lines, signaling a shift in trend momentum. The ADX line remains elevated, reflecting increased trend momentum.
Cardano Price Target: Can ADA Rally 40% to $1.11?
Given the early breakout and growing momentum, the Fibonacci levels suggest a price target near the 78.60% level at $1.11. This represents a bullish potential of over 40%.
On the downside, the key support for Cardano is at $0.16, followed by the local support trendline.
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