Cardano (ADA) surges 13% in 72 hours, bulls target $1 resistance

Coin WorldFriday, May 23, 2025 4:52 am ET
2min read

Cardano (ADA) has recently surged by 13% within a span of 72 hours, igniting bullish sentiment among traders. This price increase followed a rebound from a critical support level at $0.7125, which validated the technical formation of a pennant for many market participants. The altcoin's recovery has now shifted focus towards the $1 resistance level, a significant psychological and technical barrier that could determine the next phase of price action.

The bounce from $0.7125 has solidified the short-term bullish structure, with traders now watching for momentum to carry the price through the $1 mark. The recent price spike may be targeting a larger objective at $1.15, an area that contains equal highs liquidity which has faced multiple rejections in the past. A successful break above $1 could trigger substantial gains toward this target, clearing accumulated liquidity levels and confirming bullish control across higher time frames.

The current positioning aligns with classical breakout patterns, as pennant formations commonly lead to trend continuation in the original direction. This technical setup suggests that ADA’s bullish trajectory may persist, with the pattern completion potentially driving further upward movement. On-chain data reveals increased whale accumulation backing the price rally, with high-net-worth addresses opening long positions in ADA. This activity often precedes major price movements in the cryptocurrency market, serving as a leading indicator for price trends.

Smart money appears to be positioning for a potential breakout above $1, with the convergence of technical factors and whale behavior creating a compelling setup. The combination of liquidity targets and bullish sentiment supports the rally thesis, with strong follow-through above $1 validating this outlook. Bulls are now focused on clearing the $1 barrier with conviction, as a decisive break could open the path toward the $1.15 liquidity threshold.

The technical environment appears favorable for continued upward movement, with whale demand providing additional support for the bullish case. Current momentum and on-chain metrics align to support ADA’s push higher, with the $1.15 target representing a key milestone that could trigger the next phase of the rally. The potential for ADA to break through the $1 barrier is not just about technical analysis; it also hinges on broader market dynamics and investor sentiment. The cryptocurrency's journey to this milestone is fraught with challenges, including significant resistance levels and the need for sustained bullish momentum.

Investors and analysts are closely watching the price action of ADA, as a successful break above key resistance levels could set the stage for a rally towards the $1 mark. This would not only be a significant milestone for ADA but also a testament to the growing strength of the Cardano ecosystem. The cryptocurrency has been gaining traction due to its focus on sustainability, scalability, and security, which has attracted a loyal following among investors and developers. The ability of the bulls to maintain their momentum and break through key resistance levels will be a critical factor in determining ADA's future trajectory.