Cardano's Price Rebound Hinges on Clearing Key Resistance
Cardano's (ADA) recent price action has been a mixed bag for investors. On one hand, the asset has rebounded from its recent lows and recorded a significant increase in network activity. According to data from Cardanians, the number of monthly active addresses on the Cardano network has surged by 65% over the past 30 days, reaching approximately 328,000.
However, analysts are cautioning that ADA's ongoing rally remains unconfirmed without a decisive breakout above a major resistance level. Crypto analyst Giannes Andreou noted that while the recent price action is positive, it does not amount to a confirmed breakout until ADA closes a daily candle above the resistance level and retests the same area as support.
Andreou emphasized that simply testing resistance does not validate a breakout, and without a firm close and retest above resistance, the latest upward move may remain vulnerable to reversal. The analyst noted that despite the current rally, ADA's market structure has not conclusively broken out and requires further confirmation.