Cardano (ADA) has seen a 10% price increase over the past week and could extend these gains by another 10% if current buying pressure continues. The initial price surge has pushed ADA closer to a key resistance level at $0.40.
Since August, Cardano has been trading within a horizontal channel, facing resistance at $0.40 and finding support at $0.31. A breakout past $0.40 would be significant for future price movements.
The recent price spike indicates rising demand for ADA, supported by its Relative Strength Index (RSI) at 57.25. This suggests growing bullish momentum as more market participants accumulate ADA.
Cardano's positive funding rate of 0.008% reinforces the bullish outlook. This rate indicates traders are paying a premium to maintain long positions, reflecting an anticipated price rally.
The bullish sentiment is further strengthened by ADA’s positive bull-bear power metric from the Elder-Ray Index, currently at 0.02. This figure indicates that buying pressure is outpacing selling activity, increasing the likelihood of a successful breakout.
If the buying momentum continues, ADA could rally toward the $0.40 resistance level. A successful breakout could push the coin toward $0.47, a price last seen in June. However, another failure to breach the resistance could see ADA fall back to its support at $0.31.
