- Cardano (ADA) has experienced significant price momentum, rising over 40% since mid-January after a period of subdued trading.
- ADA faced resistance near $0.70 after a 14% surge on February 10th, followed by a correction.
- ADA’s technical indicators suggest a potential breakout if it can surpass resistance at $0.79.
The Cardano (ADA) has seen a resurgence in price momentum over the past month, gaining over 40% in value since bottoming out at $0.38 in mid-January. This latest move upward comes after an extended period of muted trading activity and seeming disinterest from traders.
However, with Cardano developer IOHK recently revealing plans for major network upgrades and functionality improvements slated for 2023, ADA now appears poised to challenge significant overhead resistance.
After ranging tightly between $0.57 and $0.63 for two full weeks in February, ADA finally broke out with a 14% pump on February 10th. However, bulls quickly ran into selling pressure near the $0.70 level, which sparked a correction.
Following several days of choppy consolidation, ADA mounted another rally, this time topping out just below $0.79 and marking a local high for the year so far.
Can Cardano hit $1?
Traders initially struggled to gain a foothold above $0.75, causing ADA to retrace as much as 20% off its highs by late February. But with buyers consistently emerging near $0.63 again, ADA appears to have established a clear floor of support. Just within the last week, the token has rallied 26% to return to the upper end of its recent range.
Based on technical indicators, ADA looks positioned for a breakout. The token is testing resistance at $0.79, and a decisive push above would open the door for further upside. The next major target for bulls sits around $0.86, a level that has capped multiple ADA rallies throughout 2022.
If $0.75 continues acting as support, ADA bulls have a green light to push for a test of $0.86 resistance. A weekly close above that threshold would signal a bullish trend reversal and bring $1.00 into sight.
However, failure to hold the $0.75 floor could see ADA give back recent gains and return to its 2023 trading range between $0.57 and $0.63 in short order.
