Cardano is trading at a crucial supply level that could spark a significant rally to new highs. Optimism has surged after last week’s interest rate cut, with many analysts anticipating strong upward momentum for the altcoin. Key market sentiment indicators, such as the funding rate, suggest traders are positioning themselves for a potential breakout.
If Cardano breaks past its current resistance, a 20% surge is expected, potentially pushing the price to levels not seen in months. This breakout could solidify the altcoin's uptrend and set the stage for further gains.
Cardano has surged over 15% since last week’s interest rate cut, fueling speculation of a potential altseason in the crypto market. Key data shows a positive funding rate of 0.01%, indicating traders are optimistic about ADA's price rally.
As Cardano approaches its key resistance level at $0.40, market sentiment points towards a potential breakout. Analysts expect a rapid 25% rally towards the $0.50 mark upon a successful breakout, marking a significant recovery for ADA.
Currently trading at $0.39, ADA is near a resistance level that hasn't been broken since late July. The 200 EMA at $0.41 acts as a significant resistance. Breaking past the $0.40 resistance is crucial for establishing a stronger uptrend and sustained rally.
Should ADA fail to break through current resistance, a pullback to lower demand levels around $0.35 could occur before any potential rebound. The coming days are crucial in determining whether Cardano can capitalize on this renewed optimism.
