Cardano (ADA) Signals Breakout As Analysts Eye $0.84 Return

Key Insights:

• Cardano successfully broke out of a multi-week consolidation range and is indicating a shift from a neutral trend to a bullish outlook.
• Technical indicators such as the MACD and RSI show that selling pressure is fading as buyers defend the important $0.40 support zone.
• The monthly chart now shows ADA at a major macro juncture within a rising wedge pattern. This makes the current price level very important.

The crypto market is changing very quickly as we move further into January. 

According to the charts, Cardano does not appear to be gearing up for a massive move to the upside.

While most of the market is currently cautious, ADA has managed to clear a major consolidation range that held it back for weeks.

Technical Breakout Fuels the Cardano Price Prediction

According to the daily charts, the outlook for Cardano has become optimistic after the breakout earlier.

The token moved past a horizontal resistance level where it had previously struggled, and this move was backed by the formation of a higher low, which often tells us that buyers are stepping in earlier than before. 

The charts now point to the $0.43 price level as the next major target for the bulls.

Cardano charts now show a possible rally towards $0.48 | Source: TradingView

At the same time, the MACD histogram has turned positive and has reached 0.0082. This indicates that the speed of the price move is increasing. 

If this trend holds, a successful retest of the $0.40 level could act as a launchpad toward $0.48.

The Monthly Wedge and Regulatory Clarity

One of the most interesting parts of the current price action is from the monthly charts. Cardano has been trading inside a massive rising wedge since the 2022 lows, according to this chart.

This pattern is narrowing, which means a big move is coming. The token is currently sitting right on the lower boundary of this wedge, and this is a “make or break” moment for the long-term trend.

Beyond the charts, the regulatory environment in the United States is also changing. The proposed CLARITY Act is a major talking point this January, and is expected to redefine “mature” blockchains as digital commodities rather than securities. 

Cardano fits this description because of its over 3,000 stake pools and if the bill is passed, it could unlock a wave of institutional money that has been waiting on the sidelines.

Future Targets and Market Scenarios

In the future, the path for ADA depends on its ability to break through the $0.48 resistance. If it clears that hurdle, the charts show that the price could rally toward $0.55 by the end of the first quarter. 

In a more bullish yearly scenario, Cardano could even return to the $0.83 range. This would represent a nearly 100% gain from the current levels.

However, there are still risks to consider. Geopolitical tensions and general market uncertainty can always trigger a “risk-off” move. If Cardano fails to hold the $0.39 support, it might retrace toward $0.34. 

For now, the bulls seem to have the upper hand, and traders should keep a close watch on the 50-day moving average for confirmation of the new trend.