Cardano Eyes $0.75 Comeback—Can ADA Defy the Crypto Circus?

Cardano’s ADA lurks below its 2024 peak—but whispers of a breakout are getting louder. Traders are watching key resistance levels like hawks circling prey.

Here’s the playbook: A clean break past $0.60 could trigger FOMO pumps toward that $0.7477 holy grail. But let’s not pretend this isn’t crypto—where ’technical analysis’ often means guessing which whale will sneeze next.

Bonus cynicism: If ADA rallies, Wall Street will suddenly ’discover blockchain potential’... right until the next 20% correction.

Bullish reversal pattern with key resistance at $0.7477

A clearly defined inverse head-and-shoulders pattern has been developing on the daily chart, with the neckline situated around $0.7477. Such a formation typically precedes bullish reversals if the neckline resistance breaks. 

ADA’s press time price action seemed to be squeezed below this level, indicating indecision. However, a breakout could trigger a sharp rally. The left shoulder, head, and right shoulder have been confirmed already. And, a consolidation NEAR the neckline often precedes strong upward momentum.

Source: TradingView

Liquidity battles and user growth – Will ADA demand overpower sell pressure at $0.70?

Binance’s latest liquidation heatmap revealed significant clusters of sell pressure and Leveraged positions just under the $0.70-mark. This zone is now acting as a liquidity magnet, with traders positioning heavily around it. 

If ADA climbs above this level, forced short liquidations could amplify upward movement. On the contrary, rejection around these zones might reinforce bearish control.

Worth noting, however, that historical dips have often seen quick absorption – A sign of underlying demand.

Source: Coinglass

On-chain address data highlighted meaningful hikes in all major categories over the past week. New addresses climbed by 4.79%, active addresses grew by 11.99%, and zero-balance addresses surged by 12.26%. 

These trends hinted at rising user engagement and speculative interest. Typically, growing address activity supports long-term price appreciation, especially when paired with strong social sentiment.

Source: IntoTheBlock

Is ADA gearing up for a sustainable breakout?

Santiment’s MVRV Z-score for ADA sat at a modest 0.056 at press time. This reading suggested that the asset remains undervalued, relative to its historical average. This low score also underlined minimal profit-taking pressure, suggesting that there may be room for growth without triggering large-scale sell-offs. 

Historically, MVRV levels above 1 signal profit-rich conditions vulnerable to correction. However, ADA’s press time level reflected a relatively neutral position. 

Source: Santiment

Finally, Cardano’s derivatives market showed clear signs of fading speculative activity. The volume dropped by 30.67% to $1.30 billion, while Open Interest fell by 5.37%. Options markets have also been thinning out, with volume plunging by 92.94%. 

This pullback in leverage may reduce sudden volatility and flush out over-leveraged positions, paving the way for healthier price discovery.

Can ADA flip $0.7477 and sustain a breakout?

With sentiment strong, address growth accelerating, and technical patterns aligning, ADA may be at the edge of a possible breakout. 

The $0.7477 neckline remains the critical resistance. If buyers succeed in flipping it into support, Cardano could enter a new phase of bullish momentum. However, failure at this level may prolong its consolidation. 

For now, the bias remains bullish. However, confirmation will depend entirely on breaking and holding above $0.7477.