Cardano (ADA) has been on an impressive streak, climbing 35% over the past week and currently trading near the $0.77 mark. With a promising technical setup and strong market sentiment, ADA seems poised for further gains. Analysts predict that Cardano could soon hit the $1 milestone, making it one of the most closely watched altcoins in the market.

Key Resistance Levels to Watch

ADA is currently encountering resistance at the 50% Fibonacci retracement level, which lies between $0.82 and $0.83 on the weekly chart. This is a crucial price range, and how ADA behaves at this level could determine the near-term direction. If Cardano can successfully break above $0.83, supported by strong candle closes, it could trigger a significant rally.

The $0.83 resistance level has proven challenging for ADA in the past. A confirmed breakout above this level would likely push the price towards higher targets, with $1 being the first major psychological barrier to watch.

Bullish Breakout Scenario

If Cardano surpasses the $0.83 resistance, the next significant target lies between $1.12 and $1.23, an area known as the golden pocket zone. This range is considered a key price zone for further bullish movement. The overall trend for ADA remains bullish, with the altcoin forming higher highs and higher lows, indicating that the upward momentum is intact.

Moreover, ADA is currently forming a bullish continuation pattern, often referred to as a symmetrical or horizontal triangle. This pattern suggests that once ADA breaks above $0.83, the price could continue to rise, with some analysts predicting a potential 30% to 43% rally. A move toward $1.18 seems possible if this breakout occurs, marking a significant step toward a new market high.

However, a breakout above $0.83 is essential to confirm this upward trajectory. Failure to overcome this resistance could result in a temporary pullback, with ADA testing support levels once again before attempting another breakout.

Cardano vs. Bitcoin: Outperformance Against BTC

Cardano has been performing strongly against Bitcoin (ADA/BTC), which is a promising sign for ADA holders. The ADA/BTC chart shows that Cardano has recently outpaced Bitcoin, bouncing off a crucial support level that has historically been followed by notable bullish moves.

In fact, similar price action occurred in late 2019 and early 2021, leading to major rallies. This suggests that Cardano is in a favorable position to outperform Bitcoin once again. The strength of ADA relative to BTC has drawn significant attention, and many are betting on Cardano continuing to gain ground against the flagship cryptocurrency.

Bullish Divergence: Signals for a New Bull Market

One of the most intriguing technical signals on the ADA/BTC chart is the formation of a bullish divergence. This pattern suggests that Cardano is moving away from a long bear market against Bitcoin and could be entering a new bullish phase.

To confirm that ADA is beginning a new bull market, analysts are looking for a higher low or a higher high on the chart. If Cardano establishes these key levels, it would solidify the bullish divergence and strengthen the case for continued upward momentum.

What’s Next for Cardano?

With a confirmed breakout above the $0.83 resistance, Cardano could see an explosive rally, potentially reaching as high as $1.18 in the coming days. The bullish technical setup, combined with strong performance against Bitcoin, has many investors optimistic about ADA’s near-term prospects.

However, Cardano’s path forward will depend largely on its ability to break through the key resistance levels. If ADA can maintain momentum and surpass the $0.83 threshold, it could unlock substantial upside potential in the coming weeks.

At the same time, any failure to break through these levels could result in a short-term pullback, giving investors a chance to re-evaluate their positions.