Cardano Spikes 8%, ADA Shows Potential For 25% Surge

Vignesh Karunanidhi
Cardano Weekly Price: ADA Eyes $0.7
Source: Crypto News

The Cardano price is increasingly constructive following last week’s big bounce, coiling into what looks to be an imminent upside breakout. ADA has stabilized around the $0.53 level, building energy to catapult 25% higher.

Over two weeks of directionless drifting, Cardano carved an apparent falling wedge, capping upside momentum. That bullish pattern typically precedes powerful trend reversals to the upside upon resolution.

ADA now appears poised for just such an outcome after springing off the formation’s boundary line, which converges with Cardano’s 50-week moving average. The support bounce signals buyers assert control, supported further by strengthening momentum signals.

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Will ADA surge 25%?

Already, Cardano ADA has reclaimed its 50-day average, turning previous overhead resistance into support. The test comes now at wedge resistance, coinciding with 2022’s swing high of around $0.65.

A daily close above the latter convinces analysts of a renewed bid likely reaching $0.70, around 30% higher from here. The long-awaited breakout would offer bulls their first taste of victory after a crushing start to the 2023 bear market.

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At the very least, Cardano seems to stabilize the situation for embattled holders clinging to hope through many difficult months.

Higher network activity and fresh ecosystem projects underline the lasting blockchain demand despite severe asset devaluation since 2021 peaks. Now traders wait to see whether strengthening use cases translate into an imminent token repricing as well.