Cardano Breaks Resistance, Enters 27% Surge Zone... "Heads Straight to $0.333"

▲ Cardano (ADA)

Cardano (ADA) has broken through a multi-week downtrend resistance line and is showing signs of an upward reversal, rapidly shifting market attention to the possibility of breaking through $0.333.

According to crypto media outlet TheCryptoBasic on May 7 (local time), Cardano showed a strong bullish trend by breaking through a key neckline resistance on its 12-hour chart. Analyst iMoneyTeam analyzed that Cardano surpassed major resistance after forming consecutive bullish candles, and the overall structure saw higher lows, indicating a shift in short-term momentum.

Cardano defended a broad support zone around $0.24, showing signs of buying recovery. On February 6, it formed a swing low at $0.220, which is still holding. After retesting a lower high than the previous low in late February and then breaking through it, it signaled weakening selling pressure even before the recent breakout.

Following the breakout of the downward resistance trendline, market focus has shifted to higher price levels. The first major zone presented in the analysis is $0.291, with the next resistance level around $0.312. If momentum continues, Cardano is evaluated to be structured for a 27% increase, potentially reaching $0.333.

The chart also presented two entry zones. The first entry zone is around the current market price of $0.267, and the second re-entry zone is around $0.249. This approach considers scenarios where short-term volatility might pull Cardano back to the support line or where it retests the breakout zone before continuing its upward trend. However, the analysis identified the area around $0.236 as an invalidation level, suggesting that if the daily close forms below this area, the current bullish structure could weaken and signal a failure of upward momentum.

Spot flow is also fueling accumulation expectations. According to Coinglass data, spot outflows from exchanges in the last 24 hours amounted to $37.7 million, exceeding inflows of $36 million. For Binance ADA/USDT accounts, the long/short ratio was 2.165, meaning there were 2.165 long position accounts for every short position account. The long/short ratio for top Cardano/USDT traders on Binance also recorded 1.74, indicating that large traders are leaning towards further upside.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*