Cardano (ADA) On The Verge Of Breakout: Can It Hit $0.79 Again?

Cardano (ADA) investors have reason to cheer, with the token experiencing a bullish resurgence. Not only are daily and weekly charts reflecting positive price action, but a technical pattern hints at a potential breakout that could propel ADA’s price into double-digit territory.

This upswing comes after months of decline that pushed over two-thirds of ADA holders underwater. However, data from IntoTheBlock reveals unwavering confidence among long-term investors, with nearly 70% holding for over a year. Their patience appears to be rewarded as the ADA surges.

CoinMarketCap data shows a 6% price increase over the past week and a 2% gain in the last 24 hours. At the time of writing, ADA sits at $0.397, boasting a market cap exceeding $14.2 billion.

Further bolstering the bullish case is the emergence of a falling wedge pattern on ADA’s charts. This consolidation period, which began in mid-April, has seen the token test its support level. The recent price uptick suggests a potential breakout from this pattern.

Should a breakout materialize, investors could witness a significant bull run, with price targets reaching as high as $0.61. A successful surge beyond this resistance level could even lead to a retest of ADA‘s March high of $0.79.

But is a breakout guaranteed? On-chain data offers some insights. Sentiment data reveals a rise in ADA’s 1-day price volatility after a period of decline. Additionally, the token’s MVRV ratio, considered a bullish indicator, has improved significantly. Open interest also coincides with the price increase, suggesting a continuation of the current trend.

However, a neutral reading on the fear and greed index at press time indicates market uncertainty. While the MACD and RSI both suggest a potential breakout from the falling wedge, the Chaikin Money Flow presents a contrasting bearish signal.

Overall, the technical and on-chain data paint a cautiously optimistic picture for Cardano. While some indicators hint at a potential price surge, others urge caution. Investors should conduct thorough research and maintain a level head before making any investment decisions.