ADA Holds Steady as Market Awaits Breakout

Cardano (ADA) has been trading sideways over the past 24 hours, holding steady at around $0.74 while many other major cryptocurrencies

Cardano (ADA) price has been consolidating in a tight range over the past 24 hours as the eighth-largest cryptocurrency showed resilience despite many major coins experiencing upward momentum.

According to recent technical analysis, ADA is forming a rounding-bottom pattern with new highs in recent days. This pattern arises after a cryptocurrency experiences a decline followed by a series of bullish candles, signaling a potential reversal from recent downward pressure.

Trading volume for ADA has also seen a 40% jump in the past 24 hours. This surge in volume indicates heightened trader participation compared to previous days, potentially signaling building momentum for a price move.

Despite the price action remaining in a holding pattern, market sentiment appears to be favoring the bulls. Data from on-chain analytics firm Coinglass reveals that traders have built $17 million worth of long positions and $3 million in short positions over the past day.

Moreover, traders are currently over-leveraged at $0.711 on the lower support side and $0.742 on the upper resistance side. These levels represent key areas to watch for potential breakout or breakdown signals in the coming days.

Open interest in ADA futures has climbed to $785.91 million. The long-to-short ratio funding rate has reached a nearly neutral point at 1.0396, although the current funding rate of -0.0029% suggests slight weakness in immediate bullish sentiment.

Technical Indicators Provide Mixed Signals For ADA

Technical indicators provide mixed signals for ADA’s short-term outlook. The daily Relative Strength Index (RSI) is still close to the neutral 50 level as traders await the next decisive move in either direction.

ADA is also facing major resistance from the 200-day Exponential Moving Average (EMA) on the daily timeframe. Breaking through this key level would be a strong bullish signal and could trigger accelerated upward movement.

The price is currently consolidating between the $0.70 support and the 61.80% Fibonacci retracement level at $0.7351. A successful breakout above this Fibonacci level could target the 78.60% retracement near $0.92.

According to recent price action, if ADA breaks above the upper boundary of the consolidation pattern and manages to close a daily candle above $0.756, analysts anticipate a 12% surge in the next few days.

This breakout could propel ADA toward the $0.85 level. However, if the price falls below the lower boundary and closes a daily candle below $0.69, support at $0.65 would be the next target. Several analysts have identified additional support levels between $0.50 and $0.60 in the event of a deeper correction.

This recognition places Cardano in elite company among top cryptocurrencies. When asked about the selection criteria, Hines explained that these tokens were chosen simply based on having the largest market caps in the space.

Adding to Cardano’s growing profile, founder Charles Hoskinson is set to moderate a discussion with Donald Trump Jr. and World Liberty Financial. The event will take place at the DC blockchain summit on March 26, focusing on digital liberty and expanding global access to digital assets.

Some analysts have set ambitious long-term price targets for ADA. Crypto analyst Dan Gambardello suggests that ADA could reach $10 in the coming bull cycle, representing a 1,300% increase from current prices around $0.70.

Gambardello highlights Cardano’s foundational technology as a competitive advantage. He notes that ADA’s technical strengths weren’t fully developed during the previous bull market, when it still managed to surge over 2,000% from $0.13 to over $3.

In the near term, the $1 mark remains a key psychological target for bulls. Fibonacci projections indicate that a successful breakout above current resistance levels could drive ADA toward this milestone, although clearing the 200-day EMA hurdle is essential first.