Cardano is at a crucial juncture, testing key support at $0.58 with the potential for a breakout or pullback

Cardano is at a pivotal point, with the price testing key support levels and volume spiking. The next few moves could decide if ADA price pushes towards a breakout or faces a pullback.

Cardano Short-Term Bubble Risk Not Overheated

Looking at Cardano’s short-term bubble risk, things aren’t as heated as they may seem. According to the latest data shared by Into The Cryptoverse, the bubble risk index for ADA is hovering at a moderate level, just under 1. This indicates that while the market is showing some signs of growth, it hasn’t reached an overheated state yet. For ADA, the absence of a red spike suggests there’s no immediate danger of a major correction or unsustainable rise.

Cardano maintains a healthy room for rally with moderate bubble risk. Source: Into The Cryptoverse via X

This presents a healthy situation for Cardano. The absence of excessive bubble risk means the current rally could be more sustainable. ADA is in a position where it can build on its momentum without triggering any sudden crashes. As long as price stability holds and the momentum continues in the current range, ADA has the potential to see steady growth, with buyers likely to continue positioning in anticipation of future upside.

ADA Cardano Price Preparing for Potential Bounce

ADA Cardano price is currently testing a critical weekly support zone at $0.58, which has held firm despite recent market pressures. The price is holding strong at this level, offering a solid foundation for a potential rebound. Analyst Cryptobutche highlights, while the MACD is not yet showing positive momentum, it is nearing a bullish crossover, suggesting that selling pressure could soon ease. This would pave the way for a potential surge, as the market sentiment shifts in favor of the bulls.

ADA price holds key support at $0.58, setting up for a potential bounce. Source: Cryptobutche via X

Adding to the bullish case, the short-term bubble risk for ADA is still within healthy limits, indicating that the current rally has room to run without the risk of overheating. With ADA holding key support and the bubble risk at moderate levels, the market seems in a good position for further upside. If the price stays above the $0.58 support and the MACD confirms the bullish crossover, ADA could be on track to challenge resistance levels and push toward the $1 range in the coming weeks.

Market Volume Building Around Supports

In a recent development from TapTools, ADA Cardano price has recorded over $381 billion in trading volume over the last 12 months, marking its position as one of the most traded crypto assets globally. This surge in trading volume aligns with the ongoing interest in ADA. Cardano has managed to hold support at key levels, with the price testing the $0.58 range. The recent volume spikes further validate the strength of this support zone and suggest that ADA is seeing added activity around the support zone.

ADA Cardano records over $381 billion in trading volume. Source: TapTools via X

Building on this momentum, if ADA can continue to hold support and keep its trading activity high, it’s likely to gain momentum and challenge upper resistance levels, including the critical $1 mark. This positions Cardano for a possible bullish continuation for the rest of 2025.

Technical Outlook: Cardano Eyes Triangle Breakout

Building on ADA’s recent bounce from key support near $0.58, the daily chart shared by best_analysts now shows a well-defined descending triangle forming. Price has tested the lower boundary around $0.52 to $0.53 multiple times and continues to hold it, which lines up with the earlier support structure. A bullish divergence has also emerged, adding strength to the setup as momentum begins to turn.

Price eyes a breakout above $0.60, targeting $0.67-$0.70, with $0.52 as key support. Source: best_analysts via X

If ADA can break through the triangle’s upper resistance near $0.60, it opens up room for a push toward $0.67 to $0.70. However, the base must hold. A daily close below $0.52 would invalidate this breakout thesis and signal caution. For now, the technicals suggest ADA is nearing a make-or-break moment.

Contrary View: Wave Structure Signals Hidden Risk Below

While Cardano continues to show resilience near the $0.58 support, a closer look at the wave structure from Manofbitcoin suggests there’s more going on under the surface. The current move higher is unfolding within a corrective wave, with the yellow bullish path still intact, but barely. The chart highlights that if ADA breaks and holds below $0.551, it could confirm the beginning of a wave-c leg to the downside, derailing the emerging bullish outlook.

ADA price faces hidden risk, with a break below $0.551 signaling potential downside. Source: Manofbitcoin via X

This stands in contrast to the recent triangle breakout potential and volume-led support. While other participants point to strength in trading activity and stable sentiment, this wave-based outlook is creating a sign of caution. If bulls lose grip on this zone, it would shift short-term momentum back toward sellers.

Final Thoughts: Bullish Scenario or Bearish Outlook?

Cardano’s current market position presents a delicate balancing act. On one hand, the technicals and volume suggest ADA has solid momentum, particularly with the key $0.58 support holding firm. On the other hand, if the price breaks below $0.52, the bullish narrative could quickly unravel, giving way to a bearish shift in momentum.

ADA Cardano price is at the crossroads. Participants should stay alert to any signs of market pressure or price action that might signal a shift in momentum. Cardano has the room to run, but it needs to maintain its weekly support to keep the bullish scenario alive.