Cardano Approaches Potential Breakout Rally Amid Market Recovery

As Bitcoin reclaims the $87,000 mark, altcoins gradually regain momentum. Cardano has surged by 1.79% in the past 24 hours, maintaining its dominance above the $0.70 psychological mark.

Currently, the ADA token trades at $0.7239, reflecting its second consecutive bullish candle. The recovery aims to surpass the 200-day EMA line; will this lead to a price surge to $1?

Cardano Analysis Teases Breakout Rally

The daily chart shows a short-term rounding-bottom reversal from the $0.70 psychological level, completing a morning-star pattern with a 1.31% recovery.

The bullish recovery continues with a 1.58% intraday price surge. However, it faces resistance from the 200-day EMA line, which acts as crucial short-term resistance. The prevailing downturn and short-term consolidation suggest the 20-day and 200-day EMA lines may give a bearish crossover soon. Yet, a broader market recovery may reduce bearish crossover chances if Cardano surpasses the average line.

Currently, consolidation keeps Cardano’s price between $0.70 and the 61.80% Fibonacci level at $0.7351. The daily RSI is approaching neutrality, indicating mixed momentum.

Increased Long Positions Amid Market Recovery

The prevailing Cardano price trend reflects a double-edged scenario amid broader market recovery, which signals potential growth for Cardano futures. Open interest has surged to $785.91 million, while the long-to-short funding rate is at a neutral point of 1.0396. This indicates a significant rise in bullish positions over the past three days, although the funding rate currently shows slight weakness in bullish sentiment at -0.0029%.

Will Cardano Price Hit $1?

A bullish breakout of the 61.80% Fibonacci level could result in a surge to the 78.60% level, just below the $1 psychological mark at $0.9216. Alternatively, the 50% level at $0.6272 is key support, with the trendline near $0.5708 potentially tested if Cardano closes below this level.