Cardano’s key price levels to watch as ADA is on the cusp of a breakout 
Cryptocurrency Nov 19, 2024 Share
The price of decentralized finance (DeFi) project Cardano (ADA) is eyeing a possible breakout after the asset experienced a significant boost inspired by post-election optimism.
As of now, ADA is at a key juncture, trading within a symmetrical triangle pattern with the price nearing the apex of the formation, according to an analysis by Av_Sebastian shared in an X post on November 19.
The analysis signaled an imminent ADA price breakout, with key levels likely determining the direction.
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On the upside, the primary resistance level to watch is $0.80. A breakout above this zone could pave the way for ADA to challenge the $0.90 mark, with momentum potentially extending toward $1. On the downside, $0.70 is key support, with stronger reinforcement around $0.65.
ADA price analysis chart. Source: TradingView
According to the analysis, ADA’s relative strength index (RSI) suggests the cryptocurrency is approaching a bullish phase but remains slightly below overbought levels, indicating room for an upward move.
Initially, the analyst noted that ADA was still early in its bullish cycle, emphasizing the asset’s potential to embark on a parabolic rally. In this case, ADA is showing potential to breach the $1 resistance.
“ADA is still very early in this cycle. It just had it’s first pump and is about to go parabolic soon,” the analyst noted.
ADA price analysis chart. Source: TradingView
At the moment, Cardano is attempting to exit a period of extended consolidation. Historical price analysis suggests the next step after this price compression could be a new high.
According to a previous Finbold report, analyst Ali Martinez highlighted that ADA appears to be following a past pattern that previously saw the token rally by over 4,000%. If history repeats itself, Martinez projected ADA could trade at $6 by late 2025.
Trading Shot’s analysis echoed this bullish momentum potential, which indicated ADA is likely to see further continuation after forming the one-day golden cross—its first since November 2023—a move that places the next target at $1.40.
Cardano’s rally and post-election momentum
ADA’s recent rally has largely benefited from the broader crypto market, which has thrived on optimism following the United States presidential election.
Speculation about major partnerships may have also fueled the recent rally. News of a potential Cardano collaboration with Donald Trump sparked excitement within the community, as the president-elect is widely expected to advocate for crypto-friendly policies once he assumes office in January.
Additionally, Cardano founder Charles Hoskinson shared a picture in front of a SpaceX rocket, igniting rumors of a potential partnership with Elon Musk, especially in relation to the newly created Department of Government Efficiency. (D.O.G.E).
Now, attention remains on whether ADA can breach the $1 resistance and emulate XRP’s gains. Notably, both ADA and XRP have previously faced scrutiny for failing to capitalize on past market rallies to mount a push toward the $1 mark.
ADA price analysis
By press time, Cardano was trading at $0.73, with daily losses of about 1.4%. However, on the weekly chart, ADA remains green, up 28%.
ADA seven-day price chart. Source: Finbold
In conclusion, ADA is nearing a potential breakout toward the $1 spot, but investors need to monitor how the asset interacts with the $0.80 resistance and $0.70 support zones.
Featured image via Shutterstock