TLDR
- Cardano broke out of a multi-month falling wedge pattern, trading at $0.7709
- Exchange data shows $9.18 million in net outflows, suggesting accumulation
- Retail sentiment is heavily bullish with 89.56% of Binance accounts long on ADA
- Japanese trading volume has surged with ADA/JPY pair hitting $295 million
- ADA targets potential 15% rally toward $1.20 zone based on technical analysis
Cardano, the seventh-largest cryptocurrency by market capitalization, is showing signs of a potential rally after breaking out of a multi-month falling wedge pattern. At press time, ADA trades at $0.7709, down 5.70% in the past 24 hours, but technical indicators and market data point to a possible upward move in the coming days.
The recent price action has caught the attention of both retail and institutional investors. A clean breakout on the charts combined with positive market signals has created what analysts call one of the “cleanest bullish setups” ADA has shown in months.
Exchange data reveals $9.18 million in net outflows as of May 15. This movement of assets off trading platforms typically indicates accumulation behavior and reduced selling pressure, supporting a potentially bullish outlook if the trend continues.
Retail traders appear extremely optimistic about Cardano’s prospects. Binance data shows 89.56% of accounts are long on ADA, with only 10.44% taking short positions. While this strong bias demonstrates confidence, it also creates downside risk if the price were to fall below the critical $0.75 support level, which could trigger cascading liquidations.
Global Demand Rising
The uptick in Cardano’s prospects isn’t limited to chart patterns. Japanese traders have shown remarkable interest in the cryptocurrency, with the ADA/JPY trading pair on Binance recording over $295 million in volume. This surge in activity from the Japanese market represents one of the top-performing pairs across exchanges.
Institutional interest is also growing. According to TapTools data, ADA now holds 0.94% of CoinMarketCap’s Top 100 Index constituents fund, approaching the 1% threshold that often signals stronger confidence from data-driven investors.
Grayscale’s latest data positions Cardano as the fourth-best performer among their top 10 crypto assets, posting an 8.6% gain that outpaces heavyweights like Bitcoin and Chainlink.
Despite the positive sentiment, there are some concerning signals in the market. The OI-Weighted Funding Rate remains flat at 0.0054%, suggesting leveraged traders lack confidence. Without stronger leverage inflows, ADA may struggle to break above key resistance levels.
Realized Cap HODL Waves show a decline in both 0-1 day and 1-7 day holders, indicating short-term traders are exiting positions. This drop in speculative momentum means ADA’s movement is likely driven by longer-term positioning.
Technical Targets
Liquidation Heatmaps identify key price zones at $0.76, $0.78, and $0.82 that will attract volatility. If ADA pushes above $0.78, short liquidations could fuel a sharper move toward $0.84. However, a dip below $0.75 might trigger long liquidations.
The measured move of the breakout from the falling channel targets the $1.20 zone, which aligns with the 0.618 Fibonacci extension and prior resistance from early March. Before reaching this target, Cardano faces intermediate hurdles at $0.92 and $1.00.
The 2-day chart shows a clean breakout above the descending trendline that has held prices down since December. This structure offers what some traders call a textbook post-resistance breakout setup with potential for a 15% move upward.
$ADA #Cardano is getting Ready for Massive Bullish Rally..📈 pic.twitter.com/ztHVCXRpeE
— Captain Faibik 🐺 (@CryptoFaibik) May 13, 2025
If bulls successfully defend the $0.75 support level and reclaim $0.78, targets at $0.84, $1.00, and eventually $1.20 become realistic. Failure to hold these levels could shift momentum to the bears.
Overall, Cardano remains in a bullish structure despite some market hesitation. The combination of spot accumulation, technical breakouts, and growing global interest creates a foundation for potential upward movement, though investors should watch key support and resistance levels closely.
The price action in the coming days will likely determine whether ADA can convert this technical breakout and growing interest into sustained momentum toward higher price targets.
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