Cardano (ADA) has broken out of a 140-day downtrend with price currently around $0.68-$0.73
Trading volume surged past $1 billion, marking a 46% increase in the last 24 hours
Technical analysis shows ADA has low bubble risk despite the recent breakout
Price targets include $0.78-$0.80 in the short term and potentially $0.90-$1.28 longer term
ADA has formed a bullish pattern after breaking out of a descending wedge
Cardano’s ADA token is gaining momentum after breaking out of a prolonged downtrend that lasted nearly five months. Currently trading between $0.68 and $0.73, ADA has shown a price increase of about 9.57% in the last 24 hours, according to data from Brave New Coin.
The cryptocurrency has caught the attention of traders and investors as it begins to show signs of renewed strength. After months of grinding lower, ADA has finally broken through a resistance line that had capped every rally attempt since late 2024.
This technical breakout is supported by a major increase in trading activity. In the past 24 hours, ADA’s trading volume crossed the $1 billion mark, representing a substantial 46% rise in activity.
Volume Surge Signals Growing Interest
The spike in trading volume to over $1 billion suggests more market participants are getting involved with Cardano. According to TapTools, such daily volume increases are relatively rare for ADA and often precede significant price movements.
With ADA’s market cap now sitting above $24 billion, this growing activity could set the stage for continued upside in the short term. Volume spikes of this magnitude typically occur when momentum is building after extended periods of weak price action.
The timing of this breakout is particularly interesting. As altcoins begin to stir again in the broader crypto market, Cardano’s emergence from its prolonged downtrend signals it may be ready to join the rotation of outperforming assets.
Low Bubble Risk Despite Strong Breakout
One of the most encouraging aspects of ADA’s current price action is the relatively low short-term bubble risk. Data from Into The Cryptoverse shows that despite the recent breakout, Cardano has not yet entered overheated territory.
This suggests the current rally has room to run before reaching concerning levels. In previous market cycles, ADA typically showed higher bubble risk just before local price tops, but that pattern is not present in the current movement.
With improving price action and modest risk levels, the current trend appears healthier than many market observers expected. This setup could give bulls more breathing room as ADA attempts to reclaim key resistance levels in the coming days.
Technical Breakouts Point to Higher Targets
Cardano has cleared several key technical hurdles that had been limiting its price potential. Most recently, ADA closed above the 12-hour trendline that had kept bulls in check since March, according to analysis from The Cryptomist.
This breakout isn’t showing signs of being a false move – it represents a solid technical shift that could open the path toward higher levels. If ADA maintains this momentum, the next immediate targets sit between $0.78 and $0.80.
Elliott Wave analysis from Mr. Brownstone suggests Cardano may be in the early stages of a five-wave impulsive move. The structure indicates ADA has completed wave II and is currently working on wave III, with a target around the $0.90 range in the short term.
The key breakout level to watch remains the $0.73-$0.75 zone. Holding above the ascending trendline would likely confirm further upside potential, especially after the extended consolidation period ADA has experienced.
Another important technical development is ADA’s breakout from a descending wedge pattern on the daily chart. This classic reversal setup confirms that sellers have exhausted their pressure and buyers are regaining control of price action.
If the current trajectory holds, price targets beyond the short-term objectives become possible. Some analysts point to levels around $1.28, which would represent approximately a 75% gain from current prices.
For the rally to continue gaining steam, ADA needs to maintain support above the $0.70-$0.73 zone. This area previously acted as resistance, so transforming it into support would signal strong trend continuation potential.
The current market structure shows ADA has shifted into a more constructive phase, breaking out of consolidation and forming higher lows on the chart. These technical developments align with increasing on-chain activity, adding weight to the bullish case.
While Bitcoin tests lower territory around $91,700, ADA’s independent strength suggests it could outperform if broader market conditions remain stable. The divergence between rising price and slightly decreasing daily volume (down 6% in the last 24 hours) may indicate that selling pressure is waning while strong hands accumulate positions.
At a current market capitalization of approximately $25.73 billion, Cardano remains one of the larger cryptocurrency projects. Its recent technical breakouts and volume increase have positioned it for potential further upside as it works to recover from its multi-month downtrend.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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