Cardano (ADA) is currently showing strong signs of a potential price breakout as it approaches the key $0.90 resistance level, with traders aiming for the $1 milestone. Several factors suggest this bullish momentum could continue.
According to Santiment data, large investors, or "whales," are increasingly confident in Cardano's potential. Addresses holding over 10 million ADA have collectively added 16 million tokens to their portfolios since September 1, indicating strong institutional backing. This is supported by a Twitter post showing that the top 100 addresses now hold nearly 30% of the entire ADA supply.
Additionally, the derivatives market is contributing to the positive outlook. Cardano's Open Interest, which measures the total value of outstanding futures contracts, has climbed to $1.77 billion, nearing its record high. This significant inflow of capital suggests that many traders are betting on further price increases.
On the technical front, ADA has broken out of a falling wedge pattern, a signal that often precedes a price reversal. The 50-period EMA crossing above the 100-period EMA on the 4-hour chart has also formed a bullish "Golden Cross." This technical setup suggests a potential move past the $0.8947 resistance, which could pave the way for a rally toward $1.
Despite these positive signals, the rally is not without risk. Momentum indicators are showing signs of weakness. The MACD is nearing a bearish crossover, and the RSI is turning downward from 60, indicating that buying pressure might be fading. If ADA fails to hold its support at $0.8753, a pullback toward the $0.8551 level is possible, which could put the entire rally in jeopardy.
September 2025, Cryptoniteuae