Why Is ADA Going Up — Will The Price Extend This Rally?

Key Takeaways

Cardano (ADA) bounced at a long-term diagonal support trend line.
Cardano broke out from a short-term diagonal resistance trend line.
Why is ADA going up, and how long will this rally continue?

Cardano is suddenly showing signs of life again, and traders are wondering why ADA is going up after weeks of weakness.

A key long-term support has held, a fresh breakout has appeared on lower timeframes, and momentum indicators are finally improving.

But the bigger question remains: Is this the start of a real rally, or just a temporary bounce before another drop?

Here’s what the charts reveal.

ADA Price Analysis

ADA’s price has increased alongside a diagonal support trend line this entire bull run.

More specifically, the support has been in place for 917 days, resulting in numerous bounces along the way.

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Will ADA Bounce or Break Down?

Zooming in on the charts shows that the upside potential is half that of the downside.

If the ADA bounce continues, the price could increase by another 50% and hit $0.540.

On the other hand, a breakdown could trigger a 30% price decrease to $0.320.

ADA Indicators — ADA/USDT Weekly Chart | Credit: Valdrin Tahiri/TradingView

Momentum indicators suggest an eventual breakdown is likely.

The Relative Strength Index (RSI) is below 50.
The Moving Average Convergence/Divergence (MACD) is negative.

So, the most optimistic outlook has the ADA price retesting the $0.540 area before a breakdown.

The long-term ADA prediction is bearish, and a breakdown from the diagonal support will confirm that bears are in full control.

Why is ADA Going Up?

Despite the long-term concerns, the short-term ADA chart is bullish.

The ADA price broke out from a diagonal resistance, confirming the end of its short-term correction.

After creating a higher low, Cardano surged yesterday and nearly hit the 0.5-0.618 Fibonacci resistance.

ADA Short-Term — ADA/USDT Six-Hour Chart | Credit: Valdrin Tahiri/TradingView

Adding to the momentum, neither the RSI nor the MACD has created bearish divergences.

Therefore, Cardano’s rally could continue within the $0.49-$0.52 resistance zone.

However, that area aligns with long-term resistance, meaning the rally may stall once the price reaches it.

What Analysts Are Saying

ADA sentiment on X is bullish.

Master of Crypto tweeted a bullish pattern, suggesting the rally will continue.

$ADA has broken out of an inverse H&S pattern. If it stays above the breakout line, the move can continue.

Target sits around $0.53 to $ 0.55$, just above the important $ 0.52 level, he stated.

The Penguin is even more bullish, illustrating a completed long-term correction.

According to him, Cardano will eventually rally above $1.

“The micro Elliott structure is a bit unclear, but on the HTF, I’m leaning toward the bottom being in.”

What To Watch Next?

Cardano is experiencing a strong short-term breakout, but its long-term trend remains fragile.

If ADA fails to reclaim its higher-timeframe resistance levels, the bears may regain control.

A decisive move above $0.540 is needed to flip the long-term outlook bullish again.

Until then, Cardano’s rally may be limited, and another reversal remains likely.

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Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.

About the Author

Valdrin Tahiri

Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.

He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.

Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.

He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.

[email protected]

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Cardano (ADA) Price Breaks Out as Bulls Return — But Can This Rally Actually Last?