- Cardano saw a 1.8% rise last week, trading at $0.3584 after rebounding from support.
- ADA’s ascending triangle pattern and growing retail interest signaled a potential bullish breakout.
Cardano (ADA) is gradually showing signs of recovery after a recent downturn that pushed its price to $0.33 earlier this month.
Over the past week, ADA has increased by 1.8%, with an additional 1.3% rise in the last 24 hours, bringing its current price to $0.3584 at the time of writing.
This rise in value comes at a time when the broader cryptocurrency market is struggling to regain momentum, and Cardano’s upward move has sparked renewed interest from investors.
ADA Poised to Rebound to $0.40?
One of the key factors behind this renewed optimism around ADA is the technical structure that is being formed on a daily basis. chart.
The asset recently rejected a major support zone within an ascending triangle pattern, a signal that often suggests the potential for a bullish breakout.
If this trend continues, ADA could continue to rise and possibly reach its next significant resistance level of $0.40.
For context, an ascending triangle pattern is a popular formation in technical analysis that indicates a potential breakout to the upside.
This pattern is characterized by a series of higher lows, forming the ascending trendline, while the upper boundary remains horizontal.
When an asset’s price consistently tests resistance but manages to form higher lows, it suggests increasing buying pressure. Once price breaks above resistance, a rally ensues.
In the case of ADA, the ascending triangle pattern has formed as the asset faces constant rejection between the $0.27 and $0.33 price range, creating a strong support level.
After each rejection from this zone, the price of ADA has historically increased, signaling that the asset may now be ready for another upward move.
Given the latest rejection from the support zone, there are now questions as to whether ADA could reach the $0.40 resistance level soon, especially if overall market conditions become favorable.
Fundamentals Support Positive Outlook
While the technical outlook suggests a bullish continuation, Cardano’s fundamentals further support the case for price growth. Data de Santiment revealed an increase in interest from ADA retailers in recent weeks.
Source: Santiment
Although the number of active addresses fell after peaking at 137,000 earlier this month, it had rebounded at press time, reaching 29,000.
This resurgence in retail activity could provide additional momentum to ADA’s price, as it reflects growing interest in the asset among individual investors.
Read Cardano (ADA) Price Prediction 2024-2025
Furthermore, according to coin mechanism, ADA’s open interest increased by 4.72%, valued at $231.29 million during this period. However, it decreased by 0.69% to $261.65 million.
Source: Coinglass
Despite this minor decline, the overall rise in Open Interest suggests traders are positioning for further price action on ADA, indicating their confidence in its near-term potential.
