Cardano ADA Surges 20% After Breaking Long-Term Trendline

Cardano (ADA) experienced a significant 20% gain in a single trading session following a breakout above a long-standing descending trendline that had been in place since late 2024. The move pushed the price above the $1.00 level and marked one of ADA’s strongest weekly performances in several months, with weekly gains reaching over 22% [1]. The breakout was supported by strong trading volume, with daily active addresses on the network rising to 42,309 and 24-hour trading volume hitting 2.21 billion ADA [1].

Technical analysts have highlighted potential price targets for ADA should the upward momentum continue. Key resistance-turned-support levels have been identified at $1.13, $1.31, and $1.54. These levels align with historical trading zones and suggest ADA could continue its climb if it remains above the broken trendline [1]. Additionally, the price is nearing the 0.618 Fibonacci retracement level at $0.92, which may provide a short-term support [1].

The price rally also triggered significant short liquidations. According to Coinglass, $5.79 million in ADA-related liquidations occurred on August 14, with $4.83 million of that attributed to short positions. The move above $1.00 forced many bearish traders out of their positions, further amplifying the upward movement [1]. Long positions also saw $956,000 in liquidations, signaling increased volatility and trading activity [1].

Network engagement has increased as well, with data from Santiment showing rising interest in the Cardano ecosystem. The surge in active addresses and trading volume suggests both retail and institutional participants are taking notice [1]. However, development activity has declined to 25.76—the lowest since early July—raising questions about the pace of on-chain innovation during this rally [1].

Meanwhile, institutional interest appears to be growing. Grayscale recently established a Delaware-based trust for ADA, sparking speculation about the potential launch of a spot exchange-traded fund (ETF) for the asset [1]. Such a product could attract more institutional capital to Cardano, potentially reinforcing the bullish case for ADA.

Traders are now watching key price levels to gauge the strength of the breakout. A close above $1.00 could pave the way for further gains, but a drop below $0.80 may signal a failed move, potentially pushing the price back toward the $0.55–$0.60 support zone seen earlier this year [1].

Source: [1] Cardano (ADA) Breaks Trendline With 20% Daily Surge, $1.54 Target Now in Play (https://cryptopotato.com/cardano-ada-breaks-trendline-with-20-daily-surge-1-54-target-now-in-play/)