Cardano Investors May Score Big in 2025, Analyst Explains Why

Analysts Eye Breakout Potential as ADA Tests Critical Resistance Zones

In the last 24 hours, Cardano price has seen a positive trend, rising from $0.78 to the $0.88 level. The 11.6% increase proves an upsurge in market activity, hence increased interest from investors. As ADA price eyes areas which were previously resistance zones, analysts believe it could be the right time for a stack move.

Positive Momentum and Technical Indicators

According to the market analysis by Christopher Visser, the Altcoin price chart aligns with a bullish setup. He argued that the price action created a wedge formation on the daily chart between a descending resistance line from 2021 and a long-term support near $0.23. 

Presently, Altcoins is testing the resistance zone between $0.88 and $0.92. This level has historically capped every major rally, so a breakout or failure will cement the mood of the market. 

Visser further said that the MACD on the daily chart crossed bullish earlier in the week, and momentum shifted upwards. The last time it crossed in this fashion, ADA went on a 62% rally, he added. 

At present, the MACD on shorter timeframes, such as the two-hour, four-hour, and six-hour, is showing similar bullish patterns, indicating a potential price surge.

Bollinger Bands and Volatility Compression

In the meantime, a huge opportunity is seen on the six-hour Bollinger Band chart where a volatility squeeze is underway, suggesting a possible sharp move. The bands indicating price volatility are tightening up as Cardano moves close to the middle band between $0.7975 and $0.8051. 

Historically, such tightening on higher timescales has been followed by rapid price movement to the upside. Should Cardano be able to hold around this important zone for a few hours, the compression may well result in a breakout of significance.

Additionally, volume is in support of this positive outlook. Visser's chart shows strong support being built around the $0.73 to $0.74 range for Altcoin. Above the current price, however, volume profile thins out to some extent and thus, less resistance is expected should momentum continue upwards.

Analysts eye Cardano price breakout potential

In another analysis, Ali Martinez also dwells on Altcoin breakout potential.Cardano, according to Martinez, is testing its 0.5 Fibonacci retracement at $0.83. If the price holds this for support, Cardano is likely to break through the next resistance at $0.92. 

Source: X

Martinez has marked $1.50 as the final target at the upper boundary of the long-term descending channel.

Per Martinez's analysis, Altcoin is currently forming a bullish reversal as it breaks out of the prolonged downtrend. For this breakout to be successful, ADA must overcome certain resistance levels, such as $0.88 and $1.00. If ADA manages to breach these levels, it could commence a massive upward rally toward its long-term target price of $1.50-a sign of a major trend reversal.

The increasing momentum and buying pressure support this possible rally towards $1.50, indicating a continuation of the bull trend should ADA maintain its upward move.