Cardano Bulls Push for Breakout Above Flag Formation

Cardano's price has been consolidating within a flag formation for most of this year. In mid-August, an attempt was made to break out of this pattern, but it failed and the price returned to its trading range. However, since rebounding from the 100-day EMA at around $0.19 five days ago, ADA bulls have been pushing with renewed intent, resulting in gains over 10% in the last 24 hours.

The latest move has brought the flag back into focus again, and a breakout above its upper bound could set the path towards the next resistance at $0.29. Funding rates also indicate growing buyer interest, with ADA recording six consecutive days of positive funding rates according to Santiment. This could facilitate ADA's price action if accompanied by greater demand for the spot.

Moreover, Cardano's trading activity has accelerated alongside the latest price move, with its 24-hour volume rising exponentially above $747 million. The network's Fully Diluted Valuation also climbed to around $9.95 billion, extending a week of consistent gains. A breakout supported by heavier volume would carry more weight than the failed attempt seen on August 22nd.