Cardano Price Eyes Massive Breakout as ADA Soars Past $0.8

Cardano price has surged past the $0.8 price level and has displayed strong performance with gains of 5.9% in 24 hours. Technical analyst Dan Gambardello highlights how ADA’s current consolidation pattern differs from previous cycles and suggested a healthier foundation for a potential major breakout toward the $1 range.

Cardano Price Shows Healthy Consolidation, Here’s All

Cardano price action displays a markedly different pattern compared to its previous bull market cycle, according to technical analysis from Dan Gambardello. Unlike the last cycle where ADA experienced a single dip after exiting the bear market before going parabolic, the current consolidation shows a more methodical approach with repeated pump and consolidate phases.

This extended consolidation period has created what analysts describe as a “coiling” effect. This is where the cryptocurrency builds energy through sustained sideways movement rather than volatile swings. The MACD indicators on ADA’s monthly chart show this pattern clearly.

The monthly MACD line currently has room for upward movement. This suggests potential for an extended bull market phase.

Notably, this technical setup mirrors the conditions that preceded ADA’s previous major price appreciation. However, it comes with added stability from the prolonged consolidation period.

Gambardello notes that this coiling behavior is not limited to Cardano price. This is because many altcoins are displaying similar patterns after years of redistribution and institutional capital influx.

The extended sideways movement has allowed for healthier price discovery and stronger support levels.

Key Moving Averages Signal Cardano Price Breakout

Cardano price analysis reveals critical technical levels that could decide the cryptocurrency’s near-term direction. Currently trading around $0.8 as per CoinGecko data, ADA price is contesting between key moving averages that will likely dictate whether the token breaks higher or faces downward pressure.

The 200-day moving average is an important resistance level that Cardano price must overcome to establish a clear bullish trend. A successful break above this level would likely trigger higher highs and higher lows. This could move the ADA price toward the $1 range, where previous swing highs await testing.

On the downside, technical analysis identifies potential support levels between $0.58 and $0.64 using Fibonacci retracement levels. The weekly chart shows ADA maintaining support above the 200-week moving average.

This marks the bottom of what analysts call the “bull market doors.” However, the more immediate challenge lies with the 20-week moving average, positioned almost exactly at current price levels.

Breaking above the 20-week moving average would create separation from key resistance and potentially trigger the overall altcoin movement that many traders anticipate.

Ethereum Breakout Could Trigger Broader Altcoin Season

The broader altcoin market, including Cardano price, may be positioned for a major movement based on Ethereum’s current technical setup. Analyst Dan Gambardello uses Ethereum as a roadmap for altcoin performance. He noted that ETH is currently testing a multi-cycle trend line that has historical importance for the entire altcoin sector.

Ethereum is approaching key resistance levels around $2,600-$2,700, with the 50-week moving average positioned at approximately $2,728. The trend line currently being tested by Ethereum goes back many cycles and has been a primary support and resistance level throughout the existence of the crypto markets.

In the last cycle, when Ethereum broke above this same trend line cleanly, it triggered altcoin season. This year, Ethereum risk model indicators suggest that the bull market stage has not yet arrived, with risk scores in the same position as November 2020 levels that resulted in the last major altcoin rally.

The altcoin chart moving averages remain tight together, compared to previous cycles when there was visible differentiation during bull market times. Such alignment means that a successful

Ethereum breakout would cause an altcoin move. It would be a more favorable time for tokens like Cardano that have consolidated and formed technical bases in this extended build-up phase.

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