Cardano (ADA) is priced at $0.5785 at present and is supported by a healthy 24-hour trading volume of $523.04 million on exchanges. Its market cap is $20.47 billion and is thus among the highest-performing digital assets based on value in the world of cryptocurrencies.
ADA is higher by 2.9% over the past week and is showing fresh buyer demand in a widely cautiously optimistic market sentiment picture.
ADA’s price stabilized in recent days, fluctuating within a very close range around a historically significant demand area on weekly charts. For nearly two years, Cardano’s price respected a well-established downtrending channel from mid-2023 to today’s date.
There were two salient trendlines of this downtrending pattern: a line of resistance joining common lower highs and a line of support resting in the $0.35 to $0.50 demand area.
In weekly candlestick charts, ADA is currently retesting that demand area after once again respecting the lower boundary. Price has bounced off this area several times and is signaling intense accumulation interest on behalf of buyers waiting for a reversal back up.
Technical charts also signal bullish divergence since momentum indicators such as RSI are marking higher lows while prices make new bottoms.
ADA Breakout Zone Gains Attention From Traders
Investors are watching closely ADA’s movement in the vicinity of the upper resistance line of the long-term downtrending channel.
As soon as it jumps beyond this downtrending resistance, particularly in the $0.60 to $0.70 area, it would finalize a reversal on the long downtrend.
Such a breakout would push ADA to an emerging rising trend and cause heightened inflows of volume and further rally potential.
However, ADA may revisit its demand zone if buyers fail to take control above the resistance level. Historical performance states such similar-patterns are 35% likely to fail and initiate downward price corrections.
Nevertheless, the bullish divergence and rising transaction volumes, 15% increased year-on-year basis, will still favor an upside breakout in the short term.
Momentum is slowly gathering on the bulls’ corner as ADA stages a move towards this critical price level. Traders and long-term investors are watching anxiously to determine if this action will bring an end to Cardano’s prolonged correction process and trigger a sustained rally for 2025.
