Cardano (ADA) is showing signs of a potential breakout after a long period of sideways movement and decline. Technical signals, combined with bullish on-chain metrics, suggest that ADA could rally over 18% from its current level, with a short-term target of $0.85—if it can close above a critical resistance at $0.71.

This fresh wave of momentum has reignited interest among both retail traders and market analysts. With trading volumes rising and on-chain activity picking up, ADA appears to be preparing for its next big move.

Bullish Signals Strengthen Across the Board

Cardano’s latest upward push follows a prolonged downtrend, and now, the token is trading around the $0.70 mark. Over the past 24 hours, ADA has gained more than 6.5%, supported by a surge in trading volume and improving technical indicators.

According to CoinMarketCap, the token’s daily trading volume has jumped by 45%, signaling increasing market participation. This renewed activity is aligned with growing optimism around ADA’s price potential.

A popular crypto analyst recently shared a 3-Day ADA/USDT chart showing Cardano within a descending channel. The chart suggests that ADA may confirm a breakout if it can hold above the $0.77 resistance level on a sustained basis.

The expert noted, “Cardano’s ADA could confirm a bullish breakout with a sustained close above $0.77.”

On-Chain Metrics Show Strong Accumulation

One of the strongest indicators supporting the bullish case is Cardano’s rising Total Value Locked (TVL). According to DEX Hunter, a decentralized exchange aggregator, Cardano’s TVL is trending upward and could soon approach a new all-time high.

Rising TVL is often associated with growing investor confidence and increased use of the network’s decentralized finance (DeFi) protocols. This uptick in locked value suggests that more users are actively deploying assets within the Cardano ecosystem, potentially pushing ADA prices higher in the process.

Historically, increases in TVL have preceded significant price moves for ADA, and the current trend appears to be no different.

Key Resistance and Support Levels in Focus

From a technical perspective, ADA is attempting to break above the 200-day Exponential Moving Average (EMA) on the four-hour chart. This level, currently aligned with horizontal resistance around $0.71, has previously acted as a tough barrier for upward price movement.

During its last encounter with this zone in early 2025, ADA saw a sharp 10% pullback. However, the sentiment in the current market cycle is notably more bullish.

AMBCrypto’s chart analysis highlights the importance of closing a four-hour candle above $0.71 to validate the next leg up. If ADA succeeds, analysts expect a potential 18.5% rally that could push prices as high as $0.85 in the short term.

Conversely, a failure to overcome this resistance could lead to a correction toward $0.62—a drop of nearly 10% from current levels.

Trader Sentiment Supports Upside

Data from Coinglass adds weight to the bullish outlook. On Binance, ADA’s long/short ratio stands at 2.61, indicating that traders are heavily leaning toward long positions. In fact, 72.30% of top traders are currently betting on price increases, while only 27.72% are positioned short.

This skew in sentiment reflects growing confidence in ADA’s potential for further upside, especially if macro conditions remain stable and Bitcoin continues to hold above key support levels.

Although ADA is still facing some mild selling pressure, particularly around the 200 EMA, this trader positioning suggests that most market participants are expecting bullish continuation rather than a reversal.

Cardano Price Outlook: What Comes Next?

The immediate focus for traders is on whether ADA can maintain momentum and close decisively above the $0.71 resistance. If it manages to do so, technical indicators suggest the price could climb to $0.85 over the next few sessions.

However, a rejection at this level would not only undermine short-term bullish sentiment but could also bring the $0.62 support zone back into play.

Overall, ADA remains one of the more closely watched altcoins, thanks to its strong community, rising on-chain activity, and growing presence in the DeFi space. As with any crypto asset, the coming days will be critical in determining whether the bulls can sustain control or if another round of profit-taking is on the horizon.

For now, Cardano’s price rally looks promising, but it all hinges on one critical level—$0.71.