Cardano (ADA) Price Approaches a Crucial Stage-Is a Breakout Imminent?

Cardano is quietly working to strengthen its platform with fresh upgrades that may help improve the decentralization of the project. Recently, the platform achieved a milestone of its first wrapped BTC on the Cardano chain (CBTC), which works similarly to that of wBTC on Ethereum but without a central custodian. 

The wrapped BTC on Cardano may unlock liquidity from the $432 billion BTC market. The wrapped asset may further appear to attract liquidity. Besides, the Total Value Locked (TVL) of Cardano is also surging heavily with a more than 11% jump, recording more than $115.99 million. 

The price of its native token, ADA, underwent a steady decline and found support near $0.298 beyond which it began with a decent upswing. A clear move above the $0.31 and the $0.32 resistance zones was recorded as the bulls raised the price above 0.23 FIB levels. The Cardano price has currently surpassed the $0.33 resistance level, with an aim to clinch beyond $0.35 by the end of the week. 

The ADA price flipped and surged, breaking beyond the descending parallel channel. The token may maintain a fine upswing to mark the interim highs above $0.35 at $0.36, where-in the 200-day MA levels are located. Securing these levels is extremely important to keep up the bullish momentum. Hence, once the price settles beyond these levels, a strong breakout toward the target at $0.4 may be imminent. 

On the contrary, if the dips haunt the ADA price rally and it fails to climb above the $0.348 and $0.35 resistance zones, then a fresh wave of bearish action may be triggered. The price could reach the immediate support levels close to $0.330 and try to flip the ongoing bearish trend. However, if these levels also fail to hold the price, then it may get back to its previous levels at $0.32 or even lower. 

Until then, the crucial levels to keep a close watch on are :

• Resistance levels: $0.347, $0.352, and $0.364.
• Support levels: $0.328, $0.319, and $0.3