- Cardano’s bullish breakout signals renewed momentum after months of sideways movement.
- Immediate resistance at $0.82–$0.85 will test ADA’s ability to sustain its rally.
- MACD and RSI indicators suggest strength but warn of a potential short-term pullback.
Cardano (ADA) posted impressive gains on May 9, closing at $0.7834 after a strong rally. Its price climbed 8.79% in 24 hours and 11.09% over the week. Market activity surged as trading volume reached $1.69 billion, reflecting growing interest from both retail and institutional traders.
The total market cap rose to $28.2 billion with 36 billion ADA in circulation. Besides, recent price action suggests that ADA has broken free from months of sideways movement. Consequently, traders are watching closely for confirmation of this trend shift as momentum indicators continue to signal strength.
ADA’s chart on the daily timeframe shows a prolonged downtrend that dominated late 2024. However, the asset transitioned into consolidation during early 2025. That rangebound structure has now given way to a bullish breakout.
ADA surged to $0.7872, gaining 2.31% during the session and signaling renewed upward momentum. Moreover, this breakout may reflect investor confidence returning after prolonged price stagnation. Market participants are beginning to position for a potential extended rally.
Resistance Levels Now in Focus as Bullish Momentum Strengthens
Following the breakout, Cardano faces immediate resistance between $0.82 and $0.85. This area reflects recent intraday highs and may limit short-term gains.
However, if buyers maintain control, the next challenge lies between $0.95 and $1.00. That zone held firm during earlier rallies in January and March 2025. A sustained move beyond this region could pave the way for a test of the $1.20 level, which marked the last major peak. Hence, ADA’s ability to hold above $0.78 will be critical in determining its next move.
Support levels appear well-defined for now. The $0.68 to $0.70 zone has shifted from resistance to a potential floor after the breakout.
Additionally, stronger support exists between $0.60 and $0.62, where price rebounded several times during the consolidation phase. These levels are key for validating bullish continuation.
Indicators Signal Strength but Hint at Possible Cooling Off
Technical indicators support the bullish outlook. The MACD line has crossed above the signal line, forming a bullish crossover. Additionally, the histogram turned positive, reflecting strengthening upward momentum.
However, caution may be warranted in the near term. The Relative Strength Index (RSI) sits at 67.87, approaching overbought territory. Consequently, a brief pullback could occur if buying pressure slows.
