Cardano’s price surpasses $0.80: What direction is ADA headed in?
Cardano’s ADA token has experienced a significant surge, climbing over 65% from its low in April to surpass the $0.80 mark. This rally comes following a boost in Bitcoin, which hit a record high of $111,861 on May 22nd, lifting the overall sentiment in the cryptocurrency market. As a result of this newfound optimism, Cardano has seen a resurgence in bullish sentiment, prompting analysts to closely monitor its potential to reach the next resistance level at $0.93 in the coming days.
After a period of volatility where ADA dropped from $1.19 in March to $0.5114 in April due to profit-taking, the token has steadily recovered. With a recent rebound above $0.80, Cardano’s price structure is showing signs of a continuing uptrend, characterized by higher lows and a breakout above a rising trendline. Key Fibonacci retracement levels indicate support at $0.7526 and immediate resistance at $0.8533. A confirmed breakout above this resistance level could lead to a retest of $0.934 in the short term.
Technical indicators also support an upward trajectory for Cardano. The RSI has shown increasing buying momentum, moving from 45-48 to 61.13 on May 22nd. Additionally, the MACD completed a bullish crossover on May 21-22 and has continued to show green histogram bars, confirming the upward trend. The BBTrend indicator, which measures directional strength based on Bollinger Band volatility, has shifted significantly to a bullish reading of +8.9913, indicating increased price volatility and a positive bias towards bulls.
Derivatives data further bolster the bullish outlook for Cardano, with open interest in ADA-related markets reaching a high of $917 million, the highest level seen in 2025. This surge in open positions reflects growing confidence and increased capital deployment from traders, supporting the sustainability of the ongoing rally. Spot trading volumes have also picked up, signaling stronger retail participation as ADA recovers price levels last seen in March.
Looking ahead, traders are keeping a close eye on key price levels for Cardano. A breakout above the $0.85 resistance zone could propel ADA towards $0.93-$0.94 in the next 7-10 days. Conversely, a breakdown below the $0.75-$0.77 support range could expose Cardano to further losses, possibly to $0.72 or even $0.647 if selling pressure escalates. While the technical setup remains bullish, Cardano’s price action will likely depend on maintaining key support levels and sustaining current volume momentum.
