Cardano hovers above $0.70 after a 14% weekly surge, forming a bullish pattern. Will a breakout above $0.74 propel it to $1?

Following a strong recovery last week, Cardano is holding its ground at $0.70. Over the past week, the price surged nearly 14%, signaling a bullish reversal.

However, the uptrend continues to face resistance from the overhead supply zone near $0.74. This area shapes a rounded bottom pattern that may define the future trend. Will a bullish breakout from this pattern push Cardano toward the $1 mark?

Cardano Price Eyes New Upswing Beyond $1

On the daily chart, Cardano’s price has bounced off a local descending support trendline for the fourth time since December 2024. This trendline is at the 23.60% Fibonacci level at $0.53.

As bulls defend the psychological support at $0.50, the ADA price trend forms a rounding bottom reversal. The neckline of this pattern lies at the $0.74 supply zone.

Currently, ADA is trading between the 38.20% Fibonacci level at $0.66 and the neckline. With multiple doji candles appearing, the short-term trend remains uncertain.

However, the broader market recovery and improving sentiment will likely support a breakout rally. The MACD and signal line maintain a positive trajectory, reinforcing the bullish outlook.

As the average line moves into positive territory, the momentum indicator also supports the potential for a breakout. Furthermore, a breakout rally would confirm a trend reversal via the Super Trend indicator, which currently places the red line at $0.72.

Based on Fibonacci levels, a breakout from the rounding bottom pattern could lead to a bullish move toward the overhead supply zone near $1.17. On the downside, critical support levels lie at $0.66 and $0.53.

Analyst Spots Potential Breakout Run in ADA Price to $0.88

Crypto analyst Ali Martinez highlights a potential breakout rally in Cardano, noting a descending channel pattern in the 3-day price chart.

Currently, the recovery run is testing the resistance trendline, which could signal the beginning of a significant breakout. According to Martinez, this breakout may lead to a smooth climb toward $0.88.

However, if the price fails to surpass the rising trendline, a pullback to the mid-line near $0.63 is likely.

Long Positions Rise Amid Breakout Rally Chances

As Cardano nears a potential breakout, rising optimism in the derivatives market has led to an increase in long positions. According to CoinGlass, long positions account for 49.13%, with a long-to-short ratio of 0.9658.

Although short positions still slightly dominate, the bulls are gradually gaining momentum. Compared to a 47.95% share of long positions on April 27, bullish sentiment is on the rise.

This trend supports the possibility of a major reversal in Cardano. Notably, open interest in Cardano has risen by 1.72% to reach $796.89 million, with a positive funding rate of 0.0046%.