ADA aims for the $0.85 mark: Price forecast and strategy for investors

After a long period of being in a downtrend, Cardano (ADA) has shifted to an uptrend and seems to be preparing for a strong bounce back. Due to the change in momentum, it is drawing attention from traders and analysts.

In the current market sentiment context, analyst Ali shared a post on X, along with a 3-day ADA chart, showing that the asset is moving within a descending channel pattern.

In the post, this expert stated:

"Cardano (ADA) can confirm a bullish breakout if it closes stably above the $0.77 level."

The TVL of Cardano skyrockets, signaling a major price increase ahead?

Alongside the positive outlook on the rise of ADA, the total locked value (TVL) of Cardano is also steadily increasing, indicating that on-chain activity is gradually bouncing back.

The DEX aggregation platform Hunter recently commented on X that the TVL of Cardano is bending upwards and may reach a new all-time high.

This increase in TVL comes after ADA broke through the downtrend line — which previously served as strong resistance for the price.

Experts and analysts believe that whenever TVL rises sharply, asset prices tend to increase accordingly.

ADA Price Action and Technical Analysis

As of the time of writing, ADA is trading around $0.71 and has recorded a price increase of over 3% in the past 24 hours.

This impressive increase after the breakout has drawn attention from both investors and traders during the same period.

According to data from CoinMarketCap, the active market participation has driven trading volume up by 45% compared to previous days.

Regarding technical analysis, ADA is still in an uptrend, but is currently facing slight selling pressure at the 200-day exponential moving average (EMA) on the 4-hour chart.

This resistance level coincides with the horizontal resistance area that is expected to reappear around June 2025. In the past, the last time ADA hit this level, the price adjusted down by more than 10%.

However, the market sentiment has changed as ADA has broken away from the downtrend line and shown strong upward momentum in recent sessions.

Source: TradingView## Price Increase and Decrease Scenarios of ADA

Based on the recent price action, ADA could rise more than 18.5% if it closes a 4-hour candle above $0.71, with the potential to reach the $0.85 mark.

However, if it cannot break through the 0.71 dollar threshold, ADA may face a fall of about 10%, pushing the price down to the 0.62 dollar range.

Currently, market sentiment is leaning towards the bulls.

According to data from Coinglass, the Long/Short ratio on Binance is at 2.61, meaning traders are heavily leaning towards Long and expecting the next upward trend.

Source: CoinGlassThis index also shows that 72.3% of top traders are currently betting on Long positions, while only 27.72% choose Short positions.

Despite the ongoing selling pressure, this data clarifies that the overall market sentiment still leans towards an upward trend.

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