After recovering from its local lows, Cardano (ADA) is retesting a key area that could send the price to the next crucial resistance. Some analysts suggest that the cryptocurrency is preparing for a massive rally.<\/p>\n
Following last week\u2019s drop to the $0.70 support, Cardano is attempting to break out of a crucial resistance level to continue its rally. The cryptocurrency has surged 8.8% from Friday\u2019s low, retesting the $0.74-$0.76 area throughout this week.<\/p>\n
Notably, ADA has been hovering between the $0.65-$0.85 price range since<\/a> the Q2 market recovery, briefly losing this area during the June pullback. However, the July market pump sent the altcoin to a four-month high of $0.93, sparking bullish sentiment among investors.<\/p>\n Since then, Cardano has been in a downtrend, attempting to break out of the descending resistance for the past two weeks. Market watcher Sebastian noted that the cryptocurrency has repeatedly retested the $0.76 zone over the past few days, suggesting that \u201cthe more it tests it, the higher the likelihood to break it.\u201d<\/p>\n According to the analyst, ADA must reclaim the 50-day Moving Average (MA), which has served as a strong resistance and support level and coincides with the descending resistance breakout area.<\/p>\n Following today\u2019s performance<\/a>, the altcoin has reclaimed the 50 MA indicator and eyes a retest of the $0.76 resistance. A breakout from this level would set the stage for a retest of the next crucial area between $0.79 and $0.80. \u201cGetting back above $0.80 would confirm the trend reversal,\u201d Sebastian affirmed.<\/p>\n Meanwhile, a rejection from this area could propel Cardano to retest the recent lows and risk losing its local range again.<\/p>\n Man of Bitcoin noted ADA\u2019s recent performance, asserting<\/a> that it is \u201cnow potentially working on a small 1-2 setup.\u201d Based on this, he suggested that \u201cas long as the price remains above the last swing low at $0.685, wave-5 of iii should follow next.\u201d<\/p>\n Meanwhile, analyst Ali Martinez highlighted<\/a> that the cryptocurrency has been trading within a descending channel since its December 2024 high of $1.32. According to the chart, ADA retested the channel\u2019s upper boundary for the first time in months during the July breakout but was ultimately rejected.<\/p>\n Reclaiming the $0.76 could propel the altcoin to the channel\u2019s resistance<\/a>, and \u201ca breakout above $0.84 could set Cardano on a path toward $1.30.\u201d<\/p>\n Additionally, Martinez asserted that \u201cADA is showing the same price structure as the last cycle, only this time, it\u2019s unfolding more gradually. And it feels like we\u2019re right at the beginning of an explosive move.\u201d<\/p>\nADA Breakout Eyes 85%-120% Rally<\/h2>\n