Cardano (ADA) price is making headlines this week as traders and analysts look for signs of a major breakout.
The coin is trading at $0.70, which is nearly 40% higher than its low in April. This steady climb has put Cardano’ native token ADA above a key support level, and many believe a rally in May could be coming.
Meanwhile, Cardano’s spot trading volume hit $700 million on Thursday, according to Coinglass.
This builds on a trend that started late last month, where daily trading volume on weekdays regularly crossed $700 million. On April 25, it even surged past $1 billion, a signal that buyers are active.
Volume matters because it tells us how much people are trading. When prices rise and the volume goes up too, it usually means more people are buying than selling. It’s a simple sign of strong interest.
At the same time, futures market activity is also picking up. According to data from Coinglass, Open interest reached $782 million on Thursday, much higher than April’s low of $576 million.
Open interest counts how many active contracts are still open. If more people are holding positions, especially when prices are climbing, it shows confidence. There’s also a positive funding rate of 0.65%, meaning people betting on a price rise are paying a fee to stay in the game.
Looking at the daily chart via Tradingview, ADA recently completed an inverse head and shoulders pattern and broke out of a falling wedge.
There’s also a confirmed retest of the wedge’s upper trendline. If the momentum holds, ADA could hit resistance levels at $0.81, $1.17, or even $1.30.
Moreover, the excitement of Cardano ETF getting approved is heating up. Bloomberg analysts now estimate there’s a 75% chance that ADA will get its own ETF this year. That could change everything.
However, not everyone is convinced. ADA is still lagging behind its March highs. Each time it reaches around $0.70, some holders cash out. Metrics from Santiment show that many are quick to take profits, which can slow down a rally.
The NVT ratio, which compares market cap to transaction volume, has also hit a three-month high, suggesting low activity despite a high valuation.
Also Read: Cardano Whales Buy 420M ADA Even as Price Fails to Break Out
