- Cardano saw a 1.8% gain over the past week to trade at $0.3584 after recovering from support.
- ADA’s rising triangle pattern and rising retail interest indicated a potential bullish breakout.
Cardano [ADA] is gradually showing signs of recovery after a recent recession that pushed the price to as low as $0.33 earlier this month.
Over the past week, ADA is up 1.8%, with an additional 1.3% increase in the past 24 hours, bringing its current trading price to $0.3584 at the time of writing.
This increase in value comes at a time when the broader cryptocurrency market is struggling to regain momentum, and Cardano’s upward move has sparked renewed interest from investors.
ADA on the verge of a rally to $0.40?
A key factor driving this renewed optimism around ADA is the technical pattern that is forming on a daily basis graphic.
The asset recently rejected a major support zone within an ascending triangle pattern, a signal that often points to the possibility of a bullish breakout.
If this trend continues, the ADA could continue rising and possibly reach the next significant resistance level at $0.40.
For context, an ascending triangle pattern is a popular formation in technical analysis that signals a possible breakout to the upside.
This pattern is characterized by a series of higher lows, which form the rising trendline, while the upper limit remains horizontal.
When the price of an asset continually tests resistance but manages to reach higher lows, it indicates increasing buying pressure. As soon as the price rises above the resistance, a rally follows.
In the case of ADA, an ascending triangle pattern has formed as the asset is consistently rejected between the $0.27 and $0.33 price range, creating a solid support level.
After each rejection from this zone, ADA’s price has risen historically, indicating that the asset is now poised for another upward move.
Given the latest rejection from the support zone, there is now speculation as to whether ADA could move towards the $0.40 resistance level soon, especially if broader market conditions become favorable.
Fundamental factors support a positive outlook
While the technical outlook suggested a bullish continuation, Cardano’s fundamentals further supported the case for price growth. Facts van Santiment revealed an increase in ADA retail interest in recent weeks.
Source: Santiment
Although the number of active addresses fell from a peak of 137,000 earlier this month, it recovered at the time of writing to reach 29,000.
This revival in retail activity could provide an additional boost to ADA’s price, as it reflected growing interest in the asset among individual investors.
Read Cardanos [ADA] Price forecast 2024–2025
Moreover, per Mint glass, ADA’s Open Interest was up 4.72% during this period and was valued at $231.29 million. However, it was down 0.69% to $261.65 million.
Source: Coinglass
Despite this small dip, the overall rise in Open Interest suggested that traders were positioning themselves for further price action in ADA, signaling confidence in its short-term potential.