Cardano (ADA) Surges 25% in Bullish Breakout

Cardano (ADA) is currently trading near $0.83, indicating a bullish trend following a significant upward breakout earlier this week. The asset has risen from the $0.66 zone and is now challenging the upper resistance between $0.83 and $0.85. This recent surge in Cardano's price reflects both positive market sentiment and technical validation of an ascending triangle breakout on the 4-hour chart.

From a broader perspective, ADA is pushing through the 0.382 Fibonacci retracement zone near $0.822, derived from the weekly chart’s November 2024 peak to its March 2025 lows. This makes the $0.84–$0.85 region a crucial level for the next phase of ADA’s rally.

On the 30-minute and 4-hour charts, Cardano's price action has continued to form higher lows and is now consolidating near a key supply zone. Bollinger Bands on the 4-hour chart are expanding, with ADA’s candles hugging the upper band, signaling strong momentum. Exponential Moving Averages (EMAs) (20/50/100/200) also fan out bullishly below the price, with the 20 EMA ($0.79) acting as dynamic support.

The Relative Strength Index (RSI) has surged back to 67 on the 30-minute chart, while the Moving Average Convergence Divergence (MACD) has turned positive with a bullish crossover, indicating rising short-term strength. This setup suggests that Cardano price volatility may rise in the coming sessions if ADA can sustain above the $0.81–$0.82 consolidation.

One major reason for Cardano's price increase today is the successful breakout above the $0.75–$0.77 resistance, which had capped ADA for nearly three weeks. The breakout was supported by volume and coincided with a rising crypto market backdrop, led by gains in Ethereum and Bitcoin. ADA’s strength has been relatively more resilient, as shown by its ability to reclaim its daily structure faster than its peers.

On the daily timeframe, the rejection of the downtrend line that started in February has been confirmed with a clean break and retest near $0.70. If ADA holds above this region, a move toward $0.87 and potentially $0.91 (0.5 Fib) becomes more likely in the days ahead.

ADA bulls appear to have regained firm control of the trend after weeks of sideways action. While the Cardano price faces immediate resistance near $0.84–$0.85, a breakout above this could open the path toward $0.91 and possibly $1.01 in the short term. Traders should watch for confirmation through RSI stability and volume follow-through. Previously, we highlighted ADA’s recovery from the $0.66 breakout zone—this now becomes the crucial invalidation level moving forward.