Can Cardano (ADA) reach the $1 mark in this cycle?

The price of Cardano (ADA) has increased by 3% in the past 24 hours, reflecting the bounce back of the entire crypto market after a recent deep fall. In the context of market capitalization increasing by more than 2% just today, many large altcoins – including ADA – are regaining growth momentum. Investor sentiment is gradually shifting to positive, opening up opportunities for ADA to maintain a short term upward trend and strengthen its position in the market.

Cardano breaks away from the downtrend

The 3% increase in the last 24 hours has helped ADA break above the downward price channel, which has been holding this coin back in a downward trend that has lasted from June 11 to June 15. This development marks an important technical signal, indicating the possibility of ending the short term correction phase.

! ada-tangDaily ADA/USDT Chart | Source: TradingViewThe bearish channel pattern forms when the price continuously creates lower highs and lows in two parallel lines that slope downwards, reflecting the dominant selling pressure. However, the price breaking out of the upper resistance of this channel is often seen as an early indicator of a possible trend reversal and a bullish return.

Notably, ADA's (BoP) "Balance of Power" indicator is currently reinforcing that view, with a positive reading of 0.33 at the time of writing. The BoP indicator helps measure the correlation of strength between bulls and bears, thereby identifying changes in market momentum. When the BoP is in positive territory, it suggests that buying is dominating — a positive support factor for the price recovery.

ADA's BoP | Source: TradingViewIn addition, the optimistic sentiment continues to dominate the ADA futures market, as reflected in the positive funding rate. According to data from Coinglass, this index is currently at 0.0081%.

Funding rate of ADA | Source: CoinglassFunding rate is the periodic payment between traders in the perpetual futures market to keep the contract price close to the spot price. When this rate is positive, it means that long positions (Long) are paying short positions (Short), reflecting the dominance of optimistic sentiment and the expectation that the price of ADA will continue to rise.

Cardano faces an important challenge at the $0.66 region

Although the journey to conquer the $1 mark of ADA still has many unknowns, if the current upward momentum continues to be sustained, this coin has a good chance of breaking through the important resistance area at $0.66 to aim for the short term target at $0.73.

Daily ADA/USDT chart | Source: TradingViewIn a more optimistic scenario, as buying pressure remains strong around the upper price range, ADA's bounce back may continue to expand and aim for the $0.76 mark.

However, if market sentiment suddenly turns negative, especially in the Cardano investor community, the price of ADA may reverse and return to the $0.62 range – which means returning to the previous downtrend.

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