Cardano is trading at a pivotal supply level that could trigger a substantial rally to new highs. Following last week’s interest rate cut, optimism has soared among analysts and investors, with many projecting a robust upward momentum for the altcoin.
This bullish sentiment is evident in both spot trading and the futures market. Key data from Coinglass highlights a positive inclination, suggesting that traders are positioning themselves for a potential breakout. The funding rate, a crucial market sentiment indicator, implies that traders are gearing up for significant gains.
A break past the current resistance could propel Cardano’s price by 20%, potentially reaching levels not seen in months. Such a breakout could cement the altcoin’s uptrend and lay the foundation for further gains.
As Cardano’s price nears this critical resistance, investors are vigilantly watching for signs of increased volume and momentum, which would validate the strength of the bullish trend. With market sentiment shifting and technical indicators aligning, Cardano appears ready for a significant move.
Cardano has already surged over 15% since the interest rate cut announcement, fueling speculation of a potential altseason in the cryptocurrency market this year. The broader market’s outlook is turning optimistic, with Coinglass data supporting this sentiment through a positive funding rate of 0.01%.
This positive funding rate indicates traders are willing to pay a premium to maintain long positions, reflecting their anticipation of further price rallies for ADA. Generally, a positive funding rate suggests a bullish market outlook as traders expect continued price appreciation.
As Cardano approaches its crucial resistance level at $0.40, market sentiment hints at a possible breakout. If the price maintains its current momentum and breaches this key resistance, analysts predict a swift surge to new highs.
Investors are closely watching this level, as a successful breakout could lead to a rapid 25% rally towards the $0.50 mark. This scenario would signify a significant recovery for ADA and strengthen the belief that altcoins, led by Cardano, could outperform in the coming weeks.
Nevertheless, the market remains cautious. While current sentiment and data indicate a bullish outlook, the price must sustain its upward momentum to confirm these predictions. Failing to break through the $0.40 resistance could result in a period of consolidation or even a short-term retracement.
As the crypto community eagerly awaits ADA’s next move, the coming days will be crucial in determining whether Cardano can harness this renewed optimism and ignite a broader altcoin rally.
Currently trading at $0.39, ADA is hovering around a key resistance level that hasn’t been breached since late July. The price is less than 5% away from the daily 200 exponential moving average (EMA) at $0.41.
This EMA has served as a significant resistance level since mid-April and now aligns with a crucial supply zone, making it a vital point for sustaining Cardano’s bullish momentum.
For the bulls to gain traction and establish a stronger uptrend, ADA must reclaim the 200 EMA and decisively break past the $0.40 resistance. Such a breakthrough would confirm a daily uptrend and could pave the way for a sustained rally to higher price levels.
Conversely, if ADA fails to break through the current resistance and set a new high, it might experience a deeper correction. A pullback to lower demand levels around $0.35 would be the likely outcome as traders seek support before any potential rebound. The upcoming days will be crucial in determining whether Cardano can overcome this resistance and establish a more bullish trajectory or if a retracement is on the horizon.
