- Cardano price breakout: Cardano surges 20% after breaking a key descending trendline.
- Price targets: $1.13, $1.31, and $1.54 are the next major resistance levels.
- Network boost: Active addresses hit 42,309 and trading volume jumps to 2.21 billion ADA.
- Short squeeze: $5.8M in liquidations, mostly from shorts, accelerate the rally.
- Institutional interest: Grayscale’s ADA trust sparks talk of a potential spot ETF.
Cardano Surge Clears Key Trendline
Cardano (ADA) has made a strong bullish move, breaking above a descending trendline that had been in place since late 2024. The breakout, which delivered a 20% daily gain and over 22% on the week, pushed ADA past the $1.00 mark, marking its best weekly performance in months.
The move came on strong trading volume, indicating heightened buying interest. ADA now sits above a former resistance zone, and a sustained close above this level could open the door for further gains.
Potential upside targets, according to CryptoPulse, include $1.13, $1.31, and $1.54, aligning with historic support and resistance levels. However, the 0.618 Fibonacci retracement level at $0.92 may act as a near-term hurdle before buyers can push higher.
If bullish momentum holds, traders may look for a climb toward $1.07, $1.28, and $1.63. On the downside, a drop below $0.80 could signal a failed breakout, possibly sending ADA back to the $0.55–$0.60 support zone.
Network Use and Trading Volume Spike
Santiment data shows that ADA’s rally is backed by increased network activity. Daily active addresses surged to 42,309, while 24-hour trading volume jumped to 2.21 billion ADA. These figures highlight growing interest from both traders and network participants.
Also Read: Cardano Approves $71 Million for Network Upgrades and Faster Transactions
Interestingly, while on-chain activity surged, development activity fell to 25.76, the lowest since early July, suggesting that price movement is currently being driven more by market sentiment than by developer updates.
Short Liquidations Fuel Rally
Coinglass reports that $5.79 million in ADA positions were liquidated on August 14, with $4.83 million coming from shorts. This short squeeze pushed prices even higher, as traders betting against ADA were forced to close positions.
Adding to bullish sentiment, Grayscale has established a Delaware-based trust for Cardano, sparking discussions about the possibility of a spot ADA ETF in the future—an event that could attract more institutional investment.