The Cardano price fell nearly 10% last night due to the liquidation of numerous long positions.
However, as bullish sentiment rises with the restart of trade talks between the U.S. and China, many altcoins have experienced upward momentum. ALso, the U.S. jobs reports is out that shows 139,000 jobs added in May, which has crossed the 126k forecast.
Notably, as a result of the optimism, the ADA price is on fire and has rebounded with a 4.50% gain in intraday trading on June 6th.
So, what does the recent intraday advancement mean for ADA coin’s future trajectory? Was yesterday’s breakdown a false signal to capture last month’s traders’ liquidity, and now it is aiming big for June?
Get all your answers down below. Keep reading.
Does Cardano Price Have Potential for a Breakout?
The performance of ADA coin over the past six months has left many investors disappointed, as it consistently struggles under the weight of geopolitical tensions.
Since its last major update regarding the Plomin hard fork in January, ADA crypto has eroded over 50% of its Q4 gains, consistently hovering below key resistance levels.
However, recent projections are sparking buzz about a potential breakout for Cardano. Expert Dan Gambardello shares this optimism, noting on X that “$2 Cardano will happen fast just when it makes its entry into the bull market”. His words suggest that if ADA clears resistance at $0.694 and $1.10, it could signal a sustained rally upward.
On Daily Chart: The Latest Move Was Correction, Not Crash
Analyzing the daily chart reveals that ADA price has been trapped in a falling parallel channel since Q1. In Q2, after losing more than 50% of its value, the decline halted thanks to a robust support zone around $0.6050, which has been tested multiple times.
Despite a recent scare from a breakdown of a three-month symmetrical triangle near this high-volume level, ADA crypto’s intraday turnaround of 4.50% suggests that the breakdown may have been a false alarm. The current price level appears too strong to break just yet.
If ADA coin gains momentum, it could retest the $1.10 mark by June-end. However, if momentum remains balanced, it may consolidate at its current level.
But, a breach of the $0.6050 support could be a catastrophic, as it directly lead to further declines, with $0.55 and $0.40 as critical support levels to monitor.
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