Cardano (ADA) Price Surges 26% as Bullish Momentum Builds

Cardano (ADA) has maintained its position above the critical $0.51 support level, indicating a bullish momentum that traders are closely monitoring. The recent break above the yellow descending trendline on the daily chart suggests a potential new bullish phase, with higher lows forming. This price structure supports both the yellow and white scenarios, keeping the bullish outlook intact as long as the price remains above $0.51.

ADA's price has shown steady gains, rebounding from support near $0.58 and climbing to a recent high of $0.7244. According to analysis, the asset has completed a wave structure labeled A to E, and the break above the descending yellow trendline could mark the beginning of a new phase. Traders are now focusing on the $0.87 mark as a key confirmation level for stronger momentum. A daily close above this point may indicate structural strength and attract more buyers to the market.

Derivatives data shows rising market confidence, with increased activity in ADA derivatives. The 24-hour trading volume rose significantly, while open interest also climbed. However, options volume dropped, showing reduced activity in that segment. Short positions faced losses, with a notable amount liquidated over the past 24 hours. The long-to-short account ratio on major exchanges stands at levels that suggest a bullish sentiment among traders. Despite the growing confidence, a sell wall remains strong near $0.87, which traders are watching closely for a confirmed breakout.

In summary, ADA's ability to hold above the $0.51 support level and the recent break above the yellow trendline indicate a bullish outlook. Traders are anticipating a move toward higher resistance zones, with the $0.87 mark being the real test for bullish continuation. A confirmed breakout above this level could lead to stronger buying activity and potentially signal a trend shift. The derivatives data supports the growing market confidence, but the sell wall near $0.87 remains a key resistance level to watch.