- Cardano (ADA) is gaining momentum after breaking the $0.74 resistance, with open interest nearing $1 billion and staking activity surging.
- Analysts now predict a potential rally toward $1.20 as bullish sentiment strengthens.
Cardano (ADA) is showing strong bullish momentum as its price breaks above the critical $0.74 resistance zone, fueling optimism for a major rally toward $1.20. With open interest in Cardano derivatives surpassing $900 million and staking activity on the rise, analysts are eyeing a potential 50% surge in ADA’s price.
After a long consolidation period of nearly two months, Cardano has jumped 20% from its recent low of $0.6425. This move marks a decisive breakout from the $0.74 supply zone, a level that had previously capped gains. The breakout, supported by a daily close at $0.7693, coincides with bullish technical indicators, such as rising MACD momentum and ADA trading above its 50, 100, and 200-day EMAs — all of which suggest an extended upward trend.
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From a technical perspective, ADA is forming a descending broadening wedge pattern. The $1.20 target coincides with the upper resistance line of this wedge and the 100% Fibonacci retracement level. Should ADA breach this zone, the next major resistance sits at the 1.272 Fibonacci extension around $1.77.
The on-chain fundamentals also back the rally. Cardano’s open interest has soared past $900 million, and with the OI funding rate remaining stable, it indicates sustained investor confidence rather than speculative volatility. If open interest continues climbing toward the $1 billion mark, further capital could flow into the ADA market, pushing the price higher.
Adding to the bullish outlook, staking activity has surged. Over 1.33 million addresses have staked more than 22 billion ADA — worth approximately $17.2 billion at the current price of $0.78. The One Community ADA (1COMM) pool alone manages over 69 million ADA, highlighting growing community trust in the network.
While the bullish scenario targets $1.20 and beyond, a breakdown below the $0.74 support would invalidate this outlook and potentially test the $0.62 support level.
With technicals, derivatives data, and staking fundamentals aligned, Cardano appears well-positioned to challenge the $1 mark in May — and possibly surge past it.
