Cardano (ADA) Surges 10% to $0.71, Breaking Key Resistance

Cardano (ADA) is currently trading near $0.71, marking a significant rally that has seen the cryptocurrency break above the critical $0.70 resistance level. This movement indicates a shift in momentum, following a period of testing lower levels earlier in the week. As the price action enters a crucial phase, traders are closely monitoring key levels to determine whether the rally can sustain or if a pullback is imminent.

Several important support and resistance zones are currently under scrutiny. The support levels at $0.68 and $0.67 are particularly noteworthy. A dip below $0.68 could signal a pullback to lower levels, while $0.67 serves as a more significant support area that could act as a reliable base for buyers if Cardano experiences a retracement. On the resistance side, $0.72 is the immediate level to watch. If the price holds above this level, it could signal a stronger move toward the next upside target at $0.73. Further resistance is anticipated at $0.75, which remains a crucial upside target if the bullish trend continues.

The Cardano price action over the past week has shown clear bullish potential. After consolidating near $0.64–$0.66, ADA broke through the $0.70 resistance zone, marking a strong buying signal. On the weekly chart, Cardano is retesting the 0.5 Fibonacci retracement level at $0.70 after a strong push from lower levels. A clean break above $0.72 would open up the path to the next Fibonacci extension zone at $0.75. The price could continue higher if bulls can maintain control above these key levels.

Technical indicators also support the bullish outlook. The Relative Strength Index (RSI) on the 30-minute chart shows that ADA is slightly entering overbought territory with a reading of 70.99. While this indicates some potential for a minor pullback, the trend remains bullish as long as the RSI holds near this level without showing divergence. The Moving Average Convergence Divergence (MACD) is also supportive of a bullish continuation, with the histogram printing increasing green bars. This suggests that the buying momentum is still intact and may continue in the short term.

Trendlines show clear breakout momentum as ADA rises above $0.70. The breakout follows a series of higher lows and trendline retests, reinforcing the bullish trend. The current breakout above the $0.70–$0.71 resistance could indicate further gains if ADA maintains support above $0.70.

The current surge in Cardano's price is driven by strong technical signals and favorable market conditions. The price has managed to break out above the $0.70 resistance, driven by increased buying interest and an overall positive market sentiment. The price spikes seen in recent hours are further supported by bullish momentum across various timeframes, especially as ADA holds above key support levels at $0.67–$0.68.

For May 9, the outlook for Cardano remains cautiously optimistic. If the price can hold above the $0.70–$0.71 resistance zone, a further rally toward $0.72–$0.75 is possible in the coming days. The RSI and MACD indicators suggest continued bullish momentum, although short-term retracements could occur if the price tests $0.72. On the downside, support at $0.68 and $0.67 would need to hold for the bullish trend to remain intact.