Cardano (ADA) Holds Key Support, Bullish Breakout Imminent
2min read Cardano (ADA) is currently trading at $0.71, holding a key support level within a multi-year bullish structure. According to crypto chartist Maelius, the recent period of inactivity may be a precursor to an ADA bullish breakout. Despite a 45% retracement from its 2024 peak, ADA has respected its long-term rising trendline, which has been intact since the 2020 Covid crash. The altcoin recently printed a higher low (HL) above $0.57, staying within a critical demand zone. Technicals now suggest that momentum is gradually rebuilding, and traders are beginning to ask the question: Is Cardano ready to rally?
Cardano’s weekly structure shows that price bounced from the demand band between $0.57 and $0.78 while reclaiming the 50-week exponential moving average (EMA) near $0.66. This EMA previously triggered an ADA bullish breakout in March 2024, when ADA surged toward $1.31. Now, the same level is acting as support, strengthening the case for another upward move. Veteran analyst Maelius pointed out that the Cardano chart pattern remains in a sequence of higher highs and higher lows, ideal for a sustained rally. Traders are watching whether the ADA RSI indicator breaks past the downtrend line from the March top.
Despite ADA’s promising technical structure, momentum indicators are yet to flash strong confirmation of a Cardano bullish breakout. The Cardano RSI indicator currently hovers near 49, forming a falling wedge pattern, a structure that typically precedes breakout moves once resistance is breached. This RSI setup mirrors historical patterns seen ahead of significant ADA rallies in 2020 and 2023. At the same time, the Wave-Trend Oscillator is curling upward, with its fast and slow lines on the verge of a bullish cross. If the cross confirms, it would further support the bullish thesis.
This confluence of technical signals suggests the market may be on the edge of another breakout phase. With price action respecting higher lows and sitting above the 50-week EMA, bullish momentum could accelerate quickly if indicators align. The timely question remains: Is Cardano ready to rally? Both volume and pattern confirmation will determine the answer in the days ahead.
Looking forward, ADA must clear resistance at $0.81, which marks the March swing high. The next major targets lie at $1.31, the December 2024 peak, and the upper channel near $1.50. Maintaining price action above $0.66 and within the rising channel supports the probability of an ADA bullish breakout. Both the Cardano RSI indicator and Cardano chart pattern suggest growing buyer pressure. Confirmation through volume and trend indicators could validate the bullish thesis.
Cardano Bulls are in control as long as weekly closes remain above the $0.57 demand floor and ADA maintains its historical uptrend. Cardano’s structure points toward higher levels with momentum oscillators on the verge of turning and a textbook ADA chart pattern unfolding. Multiple bullish signals align as traders await confirmation. The recurring question, Is Cardano ready to rally?, may soon have a definitive answer if technicals trigger a confirmed ADA bullish breakout.
Ask Aime: Is Cardano ready to rally?
