Cardano Eyes $1 Amid Breakout Formation: Can ADA Bulls Overcome $0.66 Resistance?

As Cardano approaches a key breakout pattern, a sudden surge in whale outflows signals a downside risk. Can ADA break through the crucial $0.6673 resistance?

At press time, Cardano is trading at $0.6438, reflecting a 1.37% intraday gain. The price action on the daily and 4-hour charts suggests a strengthening bullish trend.

The recent upward movement hints at the formation of a potential morning star pattern, possibly paving the way for a breakout rally. Could this rally push Cardano’s price toward the $1 mark?

Cardano Nears Breakout from Inverted Head and Shoulders Pattern

The daily chart shows Cardano taking off from the support trendline for the fourth consecutive time. This highlights the strong possibility of a new upswing in the ADA price trend.

Cardano Price Chart

Bouncing off the 23.60% Fibonacci retracement at $0.5346 and the support trendline, Cardano is challenging the 38.20% level. This crucial Fibonacci level at $0.6673 acts as the immediate threshold.

As bullish momentum grows, the MACD and signal lines give a positive crossover. However, the declining EMAs (50-day, 100-day, and 200-day) act as dynamic resistances. Additionally, the “death cross” in the 50- and 200-day EMAs carries a bearish signal on the daily chart.

On the 4-hour timeframe, the recent rebound has shaped an inverted head and shoulders pattern, with the neckline aligning with the 38.20% Fibonacci level at $0.6673.

Despite bullish momentum, the price continues to struggle at the neckline, suggesting a possible post-retest correction if buyers fail to push through this resistance.

Cardano 4-hour Price Chart

Analyst Warns of Potential Downside Amid Whale Activity

Despite the bullish signals, crypto analyst Ali Martinez warns of a potential downswing in Cardano as it reaches a crossroads. Martinez highlighted a declining channel pattern in the 3-day ADA price chart.

The reversal in Cardano has reached the midline of the parallel channel, raising the possibility of a retest of the lower boundary. Key support lies at $0.63—considered the last line of defense.

A breakdown below $0.63 would likely plunge ADA prices toward $0.54.

Furthermore, Martinez notes a sudden wave of whale offloading. According to Santiment data, whales have dumped 100 million ADA tokens over the past week. As a result, whale holdings (ranging from 1 million to 10 million ADA) have dropped to 5.65 billion ADA.

Whales have offloaded over 100 million #Cardano $ADA in the past week! pic.twitter.com/kdCl1CXmEE

— Ali (@ali_charts) April 15, 2025

Will Cardano Hit $1?

A breakout of the inverted head and shoulders pattern on the 4-hour chart could serve as a key entry point for bullish traders. Based on Fibonacci retracement levels, the breakout rally may target the 61.80% level at $0.8819.

This would significantly increase the likelihood of Cardano reclaiming the 78.60% retracement level at $1. Conversely, a failure to surpass $0.6673 could send ADA back to retest support at $0.53.

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