Cardano (ADA) Price Breaks Above Downtrend Line, Targeting 40% Rally to $1.082

Cardano (ADA) price recently broke above a long-term downtrend line, bringing hopes of a big reversal. The altcoin, trading near $0.71 at press time, has risen 3.85%

Cardano price showed strength as it broke above a long-term downtrend, bringing hopes of a big reversal. The altcoin, trading at $0.71 at press time, has risen 3.85% in the last 24 hours.

It now witnesses renewed buying pressure with positive market sentiment. Given that technical indicators were aligning for a possible breakout, ADA price could see a 40% rally towards the $1.082 level. However, Cardano’s key support levels must hold to make that rally possible.

Inverted Head and Shoulders for Cardano Price

TapTools highlighted that a potential inverted head and shoulders pattern was emerging on the Cardano price chart. This classic reversal structure suggested ADA price could be preparing for a significant upside move.

The pattern includes a central “head” at $0.557, flanked by two higher swing lows around $0.682 and $0.557, forming the left and right shoulders.

The downtrend’s critical neckline for this pattern is around $0.762, which coincides with the 23.60% Fibonacci level.

The setup would be validated with a confirmed daily close above this level and possibly a breakout toward $1.082. It would be a 40% upside from the current price and mean a healthy recovery for ADA from its recent lows.

Nevertheless, if the ADA price goes below the neckline, it may revisit the $0.686 level of support. Retaining this level will ensure that the new bullish trend persists in the market.

Cardano Price Prediction Highlighted Key Trendline Breakout

Cardano price has also broken out of a long-term downtrend, a crucial development for the token’s recovery prospects. Noteworthy, the crypto analyst Lucky demonstrated Cardano price crossing a descending trendline. It suggested that there was a change from bearish to bullish conditions.

This breakout, combined with the continuing uptrend, indicates that ADA price could be on the verge of getting into a new accumulation zone.

The next major resistance zone for Cardano price lies between $0.850 and $0.950. Clearing this area would confirm the strength of the current uptrend. It could attract more buyers, potentially driving the price toward the $1.082 target.

In the same way, ADA price has also surged past the 50-day moving average that is associated with long-term trends. This level could still be a strong support to build a sustained move higher.

Volume and Sentiment Support Bullish Cardano Price

The recent surge in the Cardano price has been accompanied by rising trading volumes. It is a notable indicator for testing the strength of bullish reversals.

An increase in the volume is a result of the rising interest of retail traders as well as institutional customers. These conditions help provide the liquidity necessary to support a sustainable uptrend.

Additionally, a recent report supported the bullish ADA price predictions, with the altcoin predicted to hit $1.33 if it breaks out of the current flag pattern. Analysts highlighted an 89% upside potential, provided ADA confirms a breakout above key resistance levels.

The sustained support above $0.70 and rising demand from long-position traders further strengthen the bullish outlook.

Key Levels to Watch for Cardano Price Recovery

For this ongoing momentum to sustain, there are several critical levels Cardano price must hold. Support is closer at $0.686, which is at the lower boundary of the triangle pattern and recent swing lows.

Breaking above the $0.762 neckline will also be crucial for confirming a breakout, with the price retreating toward $0.850 and $0.950 over the coming weeks.

Additionally, the 23.60% Fib level at $0.762 serves as a crucial resistance. A successful daily close above this level would confirm the inverted head and shoulders pattern. It will provide a clear launch pad to a more meaningful advance to $1.082 in the next phase.

If ADA price fails to break above this zone, a retest of the $0.557 support is possible, possibly setting off the continuation of the current consolidation.

Cardano price continued its steady rally, reaching $0.749 after rebounding from the $0.6598 support level and gaining over 3.15% in 24 hours. This upward momentum reflects growing investor confidence. It also strengthens the case for a potential breakout toward the $1 mark.