Cardano’s ADA (ADA-USD) has climbed 13.5% this month, shaking off February’s brutal 32% drop. Despite being 15% down for Q1, traders are growing optimistic. According to Santiment, Cardano’s social sentiment just hit a four-month high, signaling a potential breakout.
The U.S. Securities and Exchange Commission (SEC) added to the buzz after classifying Cardano’s use case as “smart contracts for government services.” The announcement coincided with ADA’s highest ratio of positive comments since November 2024. Historically, a spike in social sentiment has led to increased trading activity and price gains.
Traders Watch $0.78 Resistance for a 20% Move
ADA has been trading between $0.70 and $0.78 for the past ten days. Despite low on-chain transaction activity, analysts see technical signs of a potential surge. The altcoin is holding support at its 0.50 Fibonacci retracement level, maintaining its long-term uptrend.
A daily close above $0.78 could be the trigger. The next price targets sit between $0.84 and $0.88, representing a 20% potential rally. However, Cardano is known for prolonged sideways movement, so a breakout confirmation is key.
At the time of writing, ADA is sitting at $0.7289.
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