Cardano, will it break $1 again...Breakout signal similar to 2024 rally detected

▲ Cardano (ADA)

The possibility of Cardano (ADA) re-breaking $1 has been raised again as it approaches the top of its long-term sideways trading range. With Cardano rising more than 5% in the last 7 days, an analysis suggests that a chart structure similar to that just before the strong rally at the end of 2024 is forming.

According to crypto media outlet The Crypto Basic on May 8, Mintern, the self-proclaimed Chief Marketing Officer of Minswap, analyzed that Cardano is on the verge of a breakout from a prolonged price convergence zone on a daily chart basis. He saw the current trend as similar to the structure that appeared just before the explosive bull market at the end of 2024.

Cardano remained in a narrow downtrend channel from mid-$0.30s from August to early November 2024. It then broke through the upper resistance line and rose to its cycle high of $1.32. The original text states that Cardano has been consolidating between $0.24 and $0.30 for several months, repeatedly defending key support levels.

The current market structure shows a narrowing price range as selling pressure gradually weakens. Cardano is approaching the upper resistance trendline of this price range, and this trend has been cited as a factor increasing the likelihood of a breakout. It was also noted that buyers hold the initiative in the short-term structure as long as the key support level near $0.24 is maintained.

Technical indicators also showed an improving trend. The Relative Strength Index (RSI) rose to 60.49, indicating strengthening buying pressure. The 14-period RSI also recently broke above its moving average, supporting a shift in upward momentum. The MACD histogram also continued to show large green bars, adding strength to the optimistic outlook.

Mintern believes that if Cardano breaks out of the sideways range and follows the previous path, it could retest the psychological price level of $1. The original text explained that if Cardano rises from around $0.264 to $1, the increase would exceed 278%.

However, market uncertainties remain. The original text pointed out that the direction of Bitcoin (BTC) could continue to influence whether Cardano's additional upward momentum is sustained. Another analysis suggested that a large upward path for Cardano could open if Bitcoin reaches $86,000.

Trading activity indicators still point to a cautious trend. Over the past 24 hours, trading volume decreased by 24%, and open interest fell by 7%. If Cardano maintains the $0.24 support level and breaks through the upper resistance line, market interest surrounding a retest of $1 is expected to increase again.

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