ADA Poised for a Surge—Can Cardano Confirm a Breakout?

• Despite a 5% decline in the last 24 hours, Cardano’s ascending triangle pattern suggests investor accumulation and a potential bullish breakout ahead.
• For ADA to maintain its upward trajectory, it needs to break through the $0.83 critical resistance level.

After a period of market volatility, Cardano (ADA) is showing signs of a bullish reversal, suggesting that its price may be gearing up for a potential breakout. Recent on-chain and derivatives market data indicate growing momentum, which could set the stage for ADA’s next major move.

Cardano’s 24-hour Open Interest (OI) has increased by 2.09%, while its long-short ratio has moved to a more neutral position at 0.92. This shift suggests a balance between bullish and bearish traders, signaling that the market is awaiting a directional breakout.

According to Coinglass, as of February 19, 2025, the ADA OI-Weighted Funding Rate experienced fluctuations over the past few months, reflecting shifting market sentiment. The funding rate, which determines whether long or short traders pay funding fees, has recently turned slightly positive, an indicator of bullish sentiment among futures traders.

Meanwhile, insights from IntoTheBlock reveal a mixed outlook for ADA. While on-chain signals remain unavailable, exchange-based indicators highlight bearish smart price movement at -0.18%, contrasting with a strong bullish bid-ask volume imbalance at 68.00%. This suggests that despite short-term selling pressure, buyers are stepping in aggressively, which could support ADA’s upward momentum.

Cardano’s Price Action

Cardano’s daily active addresses and prices have seen significant fluctuations over the past three months. By the end of last week, the total number of wallets on the Cardano network had reached 5,201,576, with over 50,000 new wallets created in the past 30 days alone, highlighting growing adoption. Similarly, ADA’s price started the year at $0.84, dropped to $0.70, and later rebounded to $0.96 by the end of January.

From a technical perspective, ADA is trading within an ascending triangle pattern characterized by higher lows, which suggests accumulation and growing bullish momentum. If buyers maintain control, a breakout above the crucial $0.83 resistance level could trigger a rally toward $0.90, followed by the psychological $1.00 level. However, a break below $0.70 could trigger a decline toward $0.62. The Relative Strength Index (RSI) currently stands at 44, indicating that ADA is slightly oversold and in the early stages of a potential recovery.

At the time of writing, Cardano is trading at $0.7379, reflecting a 5.71% decline in the past 24 hours and an 8.65% drop over the past week. However, market sentiment is turning positive, fueled by Grayscale’s filing for a Cardano Exchange-Traded Fund (ETF), dubbed GADA.

Its trading volume has surged by 21% in the last 24 hours, reaching $600 million. Crypto analyst Ali Martinez predicts that ADA could experience a 25% upward move if the current momentum continues, further boosting optimism for a potential breakout.