- Cardano (ADA) surged over 6% to a five-month high of $0.611, driven by rising trading volume and increased tokens in profit.
- However, ADA now faces key resistance at $0.609, with mixed technical signals suggesting both breakout potential and downside risk.
Cardano (ADA) defied the broader crypto market trend by soaring over 6% in a single day, reaching a five-month high of $0.611. While bitcoin and most altcoins remained flat, ADA’s sudden price surge was fueled by a spike in trading volume and a notable increase in token supply moving into profit.
Cardano Price Rally Fueled by Increased Demand
The rally began with strong buying pressure around the $0.590 level, driving ADA to a high of $0.611 during Thursday’s early trading hours. Trading volume climbed significantly, hitting 48 million during the initial rally and peaking at 81.6 million during a midday pullback. This suggested that while some investors took profits near resistance at $0.609, demand remained high.
Santiment data shows that 2.34 billion additional ADA tokens entered profit in July, pushing the total supply in profit to 18.23 billion. This shift could signal renewed investor confidence and build bullish sentiment around Cardano.
Technical Indicators Hint at Breakout Potential
Despite the surge, ADA remains trapped in a falling channel pattern formed between May and June. Resistance stands at $0.609, with analysts saying a breakout above this level could open the path toward $0.71.
The MACD indicator has started showing green bars, signaling early bullish strength. However, both MACD and signal lines are still in negative territory. Meanwhile, the RSI sits at 47—just below the neutral 50 line—indicating cautious optimism but not yet a confirmed uptrend.
Cardano needs a strong daily close above the $0.609 resistance to validate a breakout. If successful, analysts expect bullish targets in the $0.70 to $0.72 range. A failure to break above this zone could see ADA drop back toward $0.5419 support, especially if it closes below the $0.5840 mark.
Market Remains Divided on ADA’s Next Move
Although technical indicators hint at possible upside, bearish on-chain data such as declining active wallets and lower exchange flows raise questions about ADA’s sustainability in the short term. The token closed Friday at $0.5835, slightly below its intraday peak but still well above support levels.
Whether Cardano can maintain this strength depends on its ability to decisively break through resistance and sustain high trading volume in the coming days.
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