Key highlights:

  • Cardano has broken above the key $0.19–$0.20 resistance zone and reached a fresh higher high near $0.204
  • Traders are watching $0.24–$0.25 as the next major upside target if support continues to hold
  • The CLARITY Act debate involving Charles Hoskinson and Elizabeth Warren is influencing crypto market sentiment

Cardano has managed to breach the level of $0.20 again, and now there’s already some interest if this movement can go further. At the moment, the ADA price is trading at $0.204, and the new breakout is attracting attention due to the way that Cardano has been able to break out above the old swing high.

 

The crypto analyst Sjuul described this coin as having one of the best-looking charts among the top cryptocurrencies. That is the kind of structure traders usually want to see when a market is trying to transition from recovery mode into a more sustained uptrend.

The ADA price breakout looks different this time

We took a look at the Bybit 4-hour ADA chart, and the recovery has been building for several weeks. Back in June, the ADA price repeatedly tested the $0.150–$0.155 area and held every time. That zone became a clear support floor.

The first bullish clue appeared in mid-July when the ADA price broke above a prior local high. After that rally, price pulled back, but buyers stepped in around $0.160–$0.165 and defended a higher low. That was an important detail because it showed buyers were becoming more aggressive.

The latest move is the real confirmation. The ADA price has now broken above the previous swing high near $0.19–$0.20 and also pushed through a descending trendline that had capped rallies for weeks. In simple terms, the short-term downtrend has been broken.

As long as the ADA price stays above roughly $0.175–$0.180, traders will likely continue treating the structure as bullish. The next major area many are watching is $0.24–$0.25.

The CLARITY Act debate is also affecting sentiment

Cardano entered the regulatory conversation this week after founder Charles Hoskinson criticized Senator Elizabeth Warren over her comments on the CLARITY Act. Warren believed that the present bill lacks enough consumer protection and measures against corruption and national security issues.

Hoskinson objected, stating that her argument extended beyond the scope of the bill and would negatively impact the crypto market as a whole. The dispute is significant because the CLARITY Act is one of the leading efforts in the U.S. aimed at regulating digital currencies. Any delay or change to the Act would impact the entire crypto market.

What comes next for the ADA price?

The chart looks much stronger than it did a few weeks ago. The ADA price has broken a descending trendline, printed a fresh higher high near $0.204, and maintained a sequence of higher lows.

In case buyers manage to push the ADA price above the breakout region of $0.19–$0.20, the next upside target for the coin is likely to be around $0.24–$0.25. In case the price falls below $0.18, the levels of $0.165 and $0.155.

According to CoinCodex’s 1-month ADA price prediction, the ADA price is projected to trade around $0.2066, indicating a largely neutral-to-slightly bullish near-term outlook from current levels. For now, Cardano has done the one thing bulls needed most: it has broken the previous high and changed the short-term market structure in their favor.