Amid the market recovery, Cardano (ADA ($0.72)) has seen a 5% daily surge to retest the $0.66 level. Its recent price action has led the cryptocurrency to break out of a bullish formation, which could propel ADA to a key resistance zone.

Cardano Breakout Eyes 27% Move

On Tuesday, Cardano followed Bitcoin’s price jump and climbed to the $0.66 resistance, attempting to break above the key level for the third time this month. ADA has been in a downtrend since hitting its 3-year high of $1.32 in December 2024, retracing over 50% in the past four months.

In March, the cryptocurrency surged 80% toward the $1.17 mark, driven by US President Donald Trump’s initial announcement of a “Crypto Strategic Reserve” comprised of ADA, XRP ($2.21), and Solana (SOL ($148.98)).

However, after the White House’s Crypto Czar, David Sacks, explained that the listed cryptocurrencies were used as an example of leading tokens, ADA’s price retraced to the $0.70-$0.80 range.

Amid the late March retraces, Cardano lost the $0.70 mark, falling to the $0.50-$0-55 zone in early April. This month, the cryptocurrency has retested the $0.66 level but has been rejected twice.

Today, it attempted to break this level again but was rejected a third time. Nonetheless, analyst Ali Martinez pointed out that ADA has broken out of a symmetrical triangle pattern amid its current performance.

Cardano has been consolidating within a symmetrical triangle formation throughout April, setting the stage for a 27% price move. After surging above the $0.63 mark, ADA broke out of the pattern, eyeing a surge toward the $0.77 resistance next.

ADA Preparing For Key Retests

Analyst Sebastian noted that the cryptocurrency “is brewing,” as it’s moving within a four-month descending channel. ADA has bounced toward the upper boundary, which has served as resistance, each time it has retested the lower trendline as support.

After the recent drop to $0.50, Cardano could retest the upper boundary soon, at around the $0.80 price range. Moreover, the analyst pointed out that the token is currently breaking out of an Inverse Head & Shoulders pattern within the descending channel, which could see the cryptocurrency surge toward the key resistance level.

Another market watcher suggested that the cryptocurrency could be following its 2020-2021 pattern. According to the chart, once ADA broke out of its bear market rally levels, it reached a new cycle high, followed by a retest of the bear market rally as support.

After breaking out of the downtrend, it rallied toward its all-time high (ATH ($0.03)) of $3.09 in the coming months. “If ADA broke out this week and followed the same pattern as last cycle, it would be on track to hit a new ATH in the middle of August,” the analyst asserted.

Meanwhile, Dan Gambardello affirmed that Cardano’s biggest resistance is at the $3 mark, “where a lot of people have regret for not selling last cycle.” The analyst forecasted that once ADA hits ATH levels, its pump “will probably pause in that general area with a lot of volatility, and then continue to $5. It’ll be like a crypto bus stop.”