Cardano (ADA) has seen a 10% price uptick over the past week. The 11th crypto asset by market capitalization is poised to extend these gains by another 10%, but only if current buying pressure holds.
A 10% rise in ADA’s price would push it past the key resistance level at $0.40. But will the breakout attempt succeed?
Cardano Eyes Key Resistance Level
Since August 1, Cardano (ADA) has been trading within a horizontal channel, a technical pattern where price moves between a defined support and resistance. In this case, ADA has faced resistance at $0.40 and found support at $0.31, fluctuating within this narrow range.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
Over the past week, ADA experienced a double-digit price spike, pushing it closer to the channel’s upper boundary. This surge signals rising demand for the altcoin, which is supported by its Relative Strength Index (RSI). At 57.25, the RSI suggests growing bullish momentum as market participants increasingly accumulate ADA.
Additionally, ADA’s positive funding rate of 0.008% further reinforces this bullish outlook. A positive funding rate indicates that traders are paying a premium to maintain long positions, reflecting anticipation of a potential price rally. As ADA nears its $0.40 resistance, the market sentiment points to a possible breakout.
ADA Price Prediction: Why This Breakout Attempt Need to Succeed
Cardano’s bullish outlook is further strengthened by its positive bull-bear power, a key metric from the Elder-Ray Index. At 0.02, the bull-bear power is currently above zero, indicating that buying pressure is outpacing selling activity. When bull power dominates, it suggests growing demand for ADA, bolstering the likelihood of a price increase.
If this buying momentum continues, ADA may rally toward the resistance at $0.40. Notably, ADA has only attempted to breach this level once since entering its current horizontal channel, but the attempt was unsuccessful.
Read more: Cardano (ADA) Price Prediction 2024/2025/2030
A breakout this time could propel the coin toward $0.47, a level last seen in June. However, if history repeats itself and the breakout attempt fails, ADA’s price may fall back to support at $0.31.
Disclaimer
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Source: https://beincrypto.com/cardano-price-increase-within-reach/