Cardano (ADA) has made a significant move, breaking the long-term resistance at $0.40 and reaching the key supply level of $0.45 after an impressive 42% surge over the last few days. This breakout is sparking renewed optimism among investors who have been waiting for ADA to demonstrate sustained strength.

According to recent data from Coinglass, the ADA funding rate has increased to levels not seen since June, indicating powerful demand and suggesting that this augment may just be the beginning of a broader trend.

This rising funding rate indicates increased leverage in the market as investors become more sanguine about ADA’s potential for further gains. If ADA holds above the $0.40 level, it could establish a recent support level, strengthening the recent uptrend and opening the door to even higher targets.

However, the next few days will be crucial as the cryptocurrency market continues to rise, with key resistance and support levels in play. With investors keeping a close eye on ADA’s price action, it remains to be seen whether this rally will maintain its momentum and push Cardano towards recent highs.

Cardano is starting to grow

Cardano has surged after months of selling pressure, marking its first major upward move recently. By pushing above key resistance levels, ADA not only shook off the downtrend but also established a recent bullish price structure.

The latest data from Coinglass underscores this bullish sentimentwhich shows that the ADA open interest (OI) funding rate has reached its highest level since June. This edged augment in funding rates is a powerful indicator of increased investor optimism as investors are willing to pay a premium for long positions, betting on Cardano’s continued growth. A positive funding rate means that demand for ADA is increasing and market participants are eager to enter into bullish trades.

This break above key levels is attracting great interest from both retail and institutional investors, who are currently bracing for potential further gains. Many analysts suggest that this pump could serve as a catalyst for a longer upward continuation if Cardano maintains its momentum. While ADA will need to establish recent support at breakout levels to confirm this trend change, the recent uptrend signals renewed confidence in Cardano’s long-term potential.

As ADA continues to rise, investors are closely watching a consolidation phase that could provide the fuel needed for the next stage of this rally. If support continues around these levels, Cardano could be on the brink of a broader uptrend, making it a key altcoin to watch as the market recovers and renewed interest in high-potential assets.

ADA Price Action: Key Levels to Watch

Cardano (ADA) is currently trading at $0.43 after a powerful rally that took it above the 200-day moving average (MA) of $0.39 – a key level indicating long-term strength and trend reversal. This move above the 200-day MA suggests that the bulls are in control, setting the stage for potential further gains. To maintain this momentum, ADA needs to hold above this moving average as support, strengthening the bullish outlook.

Recent price action remains very positive, with ADA consistently pushing to challenge recent supply levels. The next key target is $0.458, a resistance level that, if broken, could open the door to even higher prices. However, a brief pullback to lower demand levels around $0.415 would be a constructive move, allowing ADA to build solid foundations before another potential rally.

This controlled pullback could attract recent purchasing interest and provide ADA with the necessary fuel for continued growth. Overall, with price action aligned with key technical indicators, ADA’s recent rise above the 200-day MA highlights a promising turnaround for this asset, with further developments likely if critical support levels hold.

Featured image from Dall-E, chart from TradingView