Cardano, will it break $1 again? Breakout signal similar to 2024 rally detected

▲ Cardano (ADA)

The possibility of Cardano (ADA) re-breaking the $1 mark has been raised again as it approaches the upper boundary of its long-term consolidation range. With Cardano having risen over 5% in the last 7 days, an analysis suggests that a chart structure similar to the one preceding a strong rally in late 2024 is forming.

According to The Crypto Basic, a cryptocurrency specialized media outlet, on May 8, Mintern, the self-proclaimed Chief Marketing Officer of Minswap, analyzed that Cardano is on the verge of a breakout from a prolonged price convergence zone on a daily chart. He noted that the current trend is similar to the structure observed just before the explosive bull run in late 2024.

Cardano remained within a narrow descending channel from August to early November 2024, trading in the mid-$0.30 range. It then broke through the upper resistance line, rising to a cycle high of $1.32. The original article states that Cardano has been trading sideways for several months in the $0.24 to $0.30 range, repeatedly defending key support levels.

The current market structure shows a narrowing price range as selling pressure gradually weakens. Cardano is approaching the upper resistance trendline of this price range, and this trend has been cited as a factor increasing the likelihood of a breakout. It was also assessed that buyers hold the upper hand in the short-term structure as long as the key support level around $0.24 is maintained.

Technical indicators also showed an improving trend. The Relative Strength Index (RSI) rose to 60.49, indicating strengthening buying pressure. The 14-period RSI also recently broke above its RSI-based moving average, supporting a shift in upward momentum. The MACD histogram continued to show large green bars, adding to the optimistic outlook.

Mintern believes that if Cardano breaks out of its consolidation range and follows its previous path, it could retest the psychological price level of $1. The original article explained that if Cardano rises from around $0.264 to $1, the increase would exceed 278%.

However, market uncertainties remain. The original article pointed out that the direction of Bitcoin (BTC) could continue to influence whether Cardano's additional upward momentum persists. Another analysis suggested that if Bitcoin reaches $86,000, a massive upward path for Cardano could open up.

Trading activity indicators still point to a cautious trend. Over the past 24 hours, trading volume decreased by 24%, and open interest fell by 7%. If Cardano maintains the $0.24 support level and breaks through the upper resistance line, market interest surrounding a retest of $1 is expected to grow again.

*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.*