After hitting a new multi-month high, Cardano (ADA) has retraced alongside the rest of the market. Some analysts suggest that the cryptocurrency is ready to reclaim crucial resistance levels and hit new highs in the coming months.
As a result, Bitcoin, which hit a new all-time high (ATH) of $124,128 on Wednesday night, retraced to the $117,000-$118,000 support zone, while the rest of the market turned red.
In the last 24 hours, ADA has broken out of its local range, hitting a five-month high of $1.02 on Thursday morning. Amid the market drop, ADA held above its breakout level, hovering between the $0.89-$0.91 range over the past few hours, and it’s attempting to break out of its current levels.
During this period, Cardano has attempted to break out of the descending resistance twice, finally passing this barrier after surging above the $0.84 mark. To the analyst, a confirmed breakout from this level targets a 70% run to $1.50.
The cryptocurrency consolidated near the range-high after rejection from the pattern’s resistance in 2020, and before breaking out to its 2021 ATH of $3.09.
This cycle, the altcoin has repeated the same movements, accumulating within the same pattern since 2022. Since being rejected from the ascending resistance in late 2024, ADA has been trading between the mid and high zones of this pattern.
To the analyst, Cardano is ready to climb again to the formation’s resistance, around the $1.80 area, and break out to new highs.
As of this writing, ADA is trading at $0.90, a 20% increase in the weekly timeframe.
