Cardano’s ADA token rose nearly 5% to test a crucial resistance level near $0.28. Analyst Profit Demon highlighted a potential breakout from a descending channel that could propel the price toward $0.33. On-chain data shows growing interest, with Total Value Locked increasing and derivatives activity rising.
Cardano is testing a key resistance level near $0.28 after a nearly 5% price increase. The move comes as analysts identify a potential breakout from a descending channel that could send ADA toward the $0.33 level. A confirmed breakout would likely shift the near-term view toward a more bullish outlook.
Crypto analyst Profit Demon highlighted the possibility of a breakout to $0.33 in a March 13 social media post. The analyst stated that ADA is testing the top side of a descending channel formation on the 1-day chart. If ADA breaks out, the chart illustrates possible price targets of $0.33, $0.43, $0.52, or even $0.68.
As ADA approaches resistance, momentum indicators suggest growing bullish interest. The Relative Strength Index is at 68, close to the overbought threshold, while ADA trades near the 200-period Exponential Moving Average at $0.278. Reclaiming this level would significantly bolster the case for a breakout attempt.
Additionally, on-chain and derivatives data illustrate increased interest in the Cardano network. According to DefiLlama, the network’s Total Value Locked increased by 3.7% to approximately $146.9 million. According to CoinGlass, ADA Futures trading volume rose to approximately $777 million, with open interest at $461 million.
If Cardano fails to break above the descending channel resistance, the price may remain within the channel. Traders will need to monitor the $0.26-$0.27 support zone if the price does not break above the channel. A break above the long-running downtrend line could signal a change in momentum direction.
