Cardano smashes resistance, enters 27% surge territory... "Goes straight to $0.333"

▲ Cardano (ADA)

Cardano (ADA) has broken through a weeks-long downtrend resistance line, signaling an upward reversal, and market attention is rapidly shifting to the possibility of breaking through $0.333.

According to cryptocurrency specialized media The Crypto Basic on May 7 (local time), Cardano showed a bullish trend by breaking through a key neckline resistance on the 12-hour chart. Analyst iMoneyTeam analyzed that Cardano surpassed major resistance after forming consecutive bullish candles, and the overall structure saw higher lows, indicating a shift in short-term momentum.

Cardano defended a broad support zone around $0.24, showing signs of buying interest recovery. On February 6, it formed a swing low at $0.220, and that low is still holding. After retesting a lower high than the previous low before the end of February and then breaking through it, it left a signal that selling pressure was weakening even before the recent breakout.

Following the breakout of the downtrend resistance trendline, market focus shifted to higher price levels. The first major zone presented in the analysis is $0.291, and the next resistance is around $0.312. If momentum continues, Cardano is assessed to be in a structure that could rise by 27% to $0.333.

The chart also presented two entry zones. The first entry zone is around the current market price of $0.267, and the second re-entry zone is around $0.249. This approach considers situations where short-term volatility might push Cardano back to the support line or retest the breakout zone before continuing its upward trend. However, the analysis identified the area around $0.236 as an invalidation level, suggesting that if the daily close forms below this level, the current bullish structure could weaken and signal a failure of upward momentum.

Spot flow is also increasing accumulation expectations. According to Coinglass data, spot outflows from exchanges in the last 24 hours amounted to $37.7 million, exceeding inflows of $36 million. The long/short ratio for Binance ADA/USDT accounts was 2.165, meaning there were 2.165 long positions for every 1 short position. The long/short ratio for top Binance Cardano/USDT traders also recorded 1.74, indicating that large traders are betting on further upside.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*