Cardano (ADA) is back in the spotlight after its recent price rally. Right now, the price is trading for $0.82, up 4.4% and closer to the $1 target that many traders are expecting. According to data from CoinMarketCap, Cardano price has jumped nearly 24% since its low of $0.64 as of last week.
On May 9, the price broke out of a strong resistance zone at $0.75. This particular zone has kept ADA stuck since March 9. The daily closing price hit $0.7774, pushing past the 23.60% Fibonacci level at $0.7593.
During its long sideways consolidation, ADA formed a chart pattern known as an inverted head and shoulders. This is often seen as a sign of a trend reversal. The breakout from this pattern points to a price target of $1.08. That level also matches the 50% Fibonacci retracement level, with a possibility of surging by 30%.
Meanwhile, the price has also moved above the 200-day EMA, which shows long-term strength. The 50, 100, and 200 EMAs are now turning upward, and we might see a crossover soon.
In addition, open interest in ADA futures rose 2.76% to $969 million, according to Coinglass. The funding rate is over 0.011%, showing more long positions. Binance traders seem very confident as 75% of ADA accounts on the platform are betting on higher prices.
Also Read: Peter Schiff Warns Strategy of Huge Loss Amid $1.34B Bitcoin Buy
