Cardano Price May Rally to $0.40 if it Clears $0.304 resistance, Analyst

Cardano (ADA) has faced significant resistance near $0.304 and has been stuck in a sideways market. While the altcoin has faced some short-term weakness, there are signs that a bullish breakout may be on the horizon if ADA price can clear this resistance.

Analyst Ali Charts expects a successful break above $0.304, which could potentially lead to a rapid rally, with liquidity gaps at $0.338 and $0.376. However, in the short term, Cardano still faces challenges as it attempts to hold above key support levels.

Cardano Price Bullish Breakout Above $0.304 Resistance

Analyst Ali pointed out the important $0.304 resistance as the next major hurdle for Cardano price. According to Ali, if ADA price is able to clear this level, a rapid move towards $0.338 and $0.376 is very likely. The recent price action saw ADA consolidate under this resistance, but a breakout could signal the start of a more significant rally.

Ali’s analysis suggested that the market has been in a sideways range for the past 45 days, with the upper end of this range sitting around $0.304. Once the top altcoin breaks above this barrier, it could trigger a strong move into the next liquidity gaps, potentially pushing ADA towards $0.40. Therefore, the next installment of testing $0.304 is crucial to Cardano’s short-term price action.

Cardano Price Faces Bearish Pressure

Despite the bullish potential, Cardano is currently facing short-term bearish pressure. The recent rejection at the $0.292-$0.293 area sent the price lower, breaking the previous sequence of higher lows. ADA has been struggling to break above the $0.292-$0.293 resistance, and the price is now hovering around $0.284, moving closer to support at $0.282.

If ADA fails to hold the $0.282 support level, further downside to $0.280 is possible. However, if buyers can hold $0.282, it could see price stabilization and consolidation, which would give Cardano another chance to test the $0.304 resistance. In this short-term range, ADA could keep getting stuck unless it breaks key resistance levels to cause a breakout.

Cardano Futures Market Reflects Mixed Sentiment

In the derivatives market, Cardano is dealing with mixed sentiment. Recent data reported a net outflow of $13.79 million in ADA futures during the last 24 hours, with outflows of $302.50 million and inflows of $288.71 million. This shows that the bearish sentiment persists, as traders remain cautious about the immediate price action.

However, despite those short-term outflows, there is a shift towards accumulation on longer timeframes. In the previous three and five days, Cardano held net inflows of $10.77 million and $12.04 million, respectively. These inflows indicate that while the market is still wary in the short term, there is increasing interest in ADA among longer-term investors, suggesting potential for a breakout should the price clear $0.304.

Cardano Bulls Eye $0.40 Target If Resistance Breaks

Despite continued bearish pressure, the long-term outlook for Cardron remains bullish, with analysts targeting a move to $0.40. Crypto analyst Crypto Feras noted that after ADA breaks through the $0.304 resistance, $0.40 would be a logical target.

However, Feras cautions against late longs, as the market is currently in a consolidation phase, and entering at the wrong time could expose traders to downside risk.

A strong break above $0.304 would be a shift in momentum, changing the market sentiment to bullish. Should ADA break through this resistance, it could quickly head into $0.338 and $0.376, which would add further strength to the bullish case. However, if ADA fails to hold above $0.282, the bearish trend may continue, with the market possibly staying in a range-bound consolidation.