Cardano (ADA) appears poised for a significant breakout as it continues to hold above a critical support level at $0.50. This zone, which previously served as firm resistance, has now flipped into a strong support area. Traders and investors are closely watching this level, which lays the groundwork for potential bullish continuation.

Over the past several weeks, ADA has repeatedly respected the $0.50 level. This zone has not only been successfully backtested but has also held its ground on both daily and weekly charts. This price action confirms that buyers are stepping in confidently and reinforces this level’s importance in ADA’s ongoing trend.

24-hour price chart. Source: CoinMarketCap

Higher High Signals Bullish Structure

Cardano’s recent price action has also shifted the broader market structure. The asset has formed a higher high, which typically suggests the beginning of a bullish trend. With this shift in structure, ADA now has a chance to establish a higher low around the $0.50 confluence area. This classic pattern of higher highs and higher lows supports a bullish market outlook.

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In addition, trading volume has shown a noticeable increase during this consolidation phase. The rise in volume suggests that accumulation may be taking place and that a potential bottom could be in. As a result, momentum appears to be building for a continued upward move.

Key Resistance at $1.13 Could Spark a Rally

Despite the strong technical setup, Cardano still faces a major obstacle at $1.13. This level previously triggered a rejection, making it a significant supply zone. To confirm a bullish breakout, ADA must break above and close daily candles beyond this key resistance.

If ADA successfully clears $1.13, it could attract a surge of buying pressure and open the door to the next psychological target at $2.00. With structure, support, and volume aligning, Cardano may be nearing a pivotal moment in its recovery.