• ADA broke a triangle pattern, surging past $0.68 with $0.77 as the next key resistance.
• Retail activity leads rally while whales remain cautious, funding rates support bullish continuation.

Cardano [ADA] has broken out of a symmetrical triangle pattern after several weeks of compression, surging past the $0.65 resistance zone on increasing bullish momentum. 

This move comes after an extended period of sideways price action, where ADA respected both ascending and descending trendlines. At the time of writing, ADA traded at $0.696, marking a 0.43% gain in the past 24 hours.

The breakout holds structural importance, aligning with the 1.618 Fibonacci extension level at $0.684, which has now flipped into support. The $0.711 level serves as the immediate resistance, standing between ADA and a move toward $0.77.

The Fibonacci confluence near $0.77, particularly at the 2.618 extension zone, offers a logical short-term price target. If bullish momentum continues, traders may attempt to reclaim this psychological and technical level in the upcoming sessions.

ADA transaction activity – Are retail traders leading the charge?

A closer look at transaction count by size reveals that smaller transactions are dominating the current trend. Transfers below $1 have increased by 250%, signaling a dramatic surge in retail activity.

In stark contrast, large transactions exceeding $100k have dropped significantly, with declines ranging from 60% to nearly 87%, depending on bracket size.

This dynamic suggests the current leg up is being powered primarily by smaller retail participants rather than institutional capital. While this reflects growing grassroots interest in ADA, it also implies that whales and high-net-worth investors are still sitting on the sidelines. 

ADA spot market positioning – Balance favors cautious optimism

Spot flows, as of the 23rd of April, reflect closely matched market participation on both sides.

Inflows totaled $26.26 million while outflows stood at $26.36 million, indicating a slight net withdrawal.  This kind of marginal outflow is often observed during early breakout stages, where traders lock in short-term gains without fully exiting positions.

This balanced spot activity reinforces the idea that participants are engaged yet risk-aware. If inflows begin to outweigh outflows meaningfully, it could act as a catalyst that propels price further toward the $0.77 target.

Derivatives sentiment – Positive funding rate supports bullish bias

Derivatives data also aligns with the technical breakout narrative. The OI-Weighted Funding Rate stood at 0.0096%, at press time. This indicates a clear indication that traders are paying to hold long positions. 

This shift toward positive funding emerged as ADA broke above the key resistance zone, suggesting renewed conviction among leveraged participants.

Importantly, the Funding Rate has remained stable and positive even as ADA approached the 0.711 resistance.

What next for ADA

Cardano’s structure appears firmly bullish following its breakout from consolidation. Retail engagement is intensifying, derivatives sentiment is strong, and spot activity shows no signs of sharp distribution. 

While whales remain inactive, sustained momentum above $0.684 could shift market psychology.

Therefore, if ADA maintains its current trajectory, the $0.77 target remains highly attainable in the short term.