Amid the market recovery, Cardano (ADA) has seen a 5% daily surge to retest the $0.66 level. Its recent price action has led the cryptocurrency to break out of a bullish formation, which could propel ADA to a key resistance zone.<\/p>\n
On Tuesday, Cardano followed Bitcoin\u2019s price jump and climbed to the $0.66 resistance, attempting to break above the key level for the third time this month. ADA has been in a downtrend since hitting its 3-year high of $1.32 in December 2024, retracing over 50% in the past four months.<\/p>\n
In March, the cryptocurrency surged 80% toward the $1.17 mark, driven by US President Donald Trump\u2019s initial announcement of a \u201cCrypto Strategic Reserve\u201d comprised of ADA, XRP, and Solana (SOL).<\/p>\n
However, after the White House\u2019s Crypto Czar, David Sacks, explained that the listed cryptocurrencies were used as an example of leading tokens, ADA\u2019s price retraced<\/a> to the $0.70-$0.80 range.<\/p>\n Amid the late March retraces, Cardano lost the $0.70 mark, falling to the $0.50-$0-55 zone in early April. This month, the cryptocurrency has retested the $0.66 level but has been rejected twice.<\/p>\n Today, it attempted to break this level again but was rejected a third time. Nonetheless, analyst Ali Martinez pointed out that ADA has broken out of a symmetrical triangle pattern amid its current performance.<\/p>\n Cardano has been consolidating<\/a> within a symmetrical triangle formation throughout April, setting the stage for a 27% price move. After surging above the $0.63 mark, ADA broke out of the pattern, eyeing a surge toward the $0.77 resistance next.<\/p>\n Analyst Sebastian noted that the cryptocurrency \u201cis brewing,\u201d as it\u2019s moving within a four-month descending channel. ADA has bounced toward the upper boundary, which has served as resistance<\/a>, each time it has retested the lower trendline as support.<\/p>\n After the recent drop to $0.50, Cardano could retest the upper boundary soon, at around the $0.80 price range. Moreover, the analyst pointed out<\/a> that the token is currently breaking out of an Inverse Head & Shoulders pattern within the descending channel, which could see the cryptocurrency surge toward the key resistance level.<\/p>\n Another market watcher suggested that the cryptocurrency could be following its 2020-2021 pattern. According to the chart, once ADA broke out of its bear market rally levels, it reached a new cycle high, followed by a retest of the bear market rally as support.<\/p>\n After breaking out of the downtrend, it rallied toward its all-time high (ATH) of $3.09 in the coming months. \u201cIf ADA broke out this week and followed the same pattern as last cycle, it would be on track to hit a new ATH in the middle of August,\u201d the analyst asserted.<\/p>\nADA Preparing For Key Retests<\/h2>\n