Cardano (ADA) price has been in a descending channel for the last five months but is aiming for a breakout. Despite some volatility, ADA shows potential for a surge.
Recent whale selloffs, including a massive 140 million ADA transaction worth over $50 million, have injected uncertainty into the market. While this raised concerns, similar selloffs in the past have led to bullish outcomes as smaller investors find buying opportunities.
Market sentiment remains cautiously optimistic despite short-term pressures. Long-term outlook suggests positive momentum for Cardano, which continues to display strong performance despite recent fluctuations.
ADA's price is edging closer to breaking out of its descending channel, with investors eyeing a key resistance level at $0.37. Breaking this barrier could lead to a 40% rise, targeting $0.51, which would mark a significant recovery and boost investor confidence.
However, if the breakout fails, ADA may retest the $0.34 support level or drop further to $0.31, raising concerns about extended sideways movement and potentially invalidating the bullish outlook.
