Cardano's Price Surges 20% Amid Bullish Reversal

Cardano (ADA) has recently shown signs of a bullish reversal, with its price reaching $0.8 for the first time since the March pullback. This suggests that the token may be on the path to recovery. However, historical charts indicate the possibility of a bull trap, which keeps the upcoming price action uncertain until it seals a range above the threshold.

The price action of Cardano has changed rapidly over the past few days, indicating a shift in market sentiment. After a significant correction in the first quarter, the ADA price has rebounded sharply by over 20%, helping the token to recover some of its losses. However, risk models suggest that the Cardano bull run has not yet begun, despite the recent price upswing. The price recently hit a logical high at $0.817 but failed to hold above $0.8 as bears quickly dragged the levels lower.

Now, the question arises: can ADA prices reclaim $1 by May 2025, or will they remain consolidated below $0.8? Since the ADA price topped above $1.33 in late 2024, bulls have struggled to prevent the token from breaking the descending trend. Although it attempted to break above these levels, the rejection that followed dragged the price down by nearly 30%. With the token now initiating another breakout, the question remains: will it continue to rise, or is another rejection imminent?

The weekly chart of Cardano suggests that the price has maintained a bullish trend since the 2023 rebound from lows below $0.25. Since then, the token's volatility has increased considerably, causing the price to surge above the 200-day moving average for the first time in several years. Additionally, the 50/200-day weekly moving average is heading towards a bullish crossover for the first time in history. On the other hand, the Chaikin Money Flow (CMF) has triggered a bullish divergence from the lows.

Previously, when the levels triggered a rebound from the lows, the price experienced a 300% jump. Therefore, a similar price action is expected in the coming weeks. This suggests that the Cardano price is primed to rise above $3 once the levels secure a range above $1.25. The ADA price is gaining momentum, indicating that the token may not face rejection as bulls are poised to elevate the levels beyond the current highs.