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Cardano (ADA) is showing a notable bullish breakout on the charts. The digital asset has recently witnessed a significant rise in its price, driven by an increase in trading volume, indicating strong buying interest in the market.
The daily chart of ADA/USDT on Binance reflects this momentum, with the price of ADA rising sharply and currently hovering around $0.3690. Notably, the price is well above the 50-day and 100-day moving averages, which are commonly used indicators to gauge the strength of the long-term trend. Positioning above these averages usually indicates a strong bullish trend.
A closer inspection of the volume profile during this rally reveals a substantial increase in trading activity, which correlates with the price increase. This increased volume is a testament to growing investor confidence and suggests that the price may continue its upward trajectory.
If ADA maintains this rally, a 20% jump from its current price level appears to be within reach. This would put the price target near $0.44, provided current support levels remain stable and market sentiment remains in favor of the bulls.
However, in the volatile world of cryptocurrency trading, pullbacks are just as common as rallies. If Cardano encounters resistance and profit-taking near the $0.38 to $0.40 range, a short-term pullback could occur before the next bullish leg.
For ADA to advance and sustain the rally, continued volume support and positive market news will be crucial. Additionally, as the broader crypto market shows signs of recovery, developments on the ADA network and its growing adoption could act as additional catalysts for price growth.
