Cardano (ADA) Eyes $1 as Price Surges Past Key Moving Averages

Cardano (ADA), the ninth-largest cryptocurrency by market cap, is showing signs of a bullish trend reversal after reclaiming two major technical levels. In the past 24 hours, ADA has jumped 9.54%, reaching $0.79 and gaining 9.25% on the week. This rally coincides with Bitcoin’s surge past $104,000, lifting sentiment across the broader crypto market.

ADA’s latest rebound pushed it above both the 50-day and 200-day Simple Moving Averages (SMAs), historically strong indicators of trend direction. The 50-day SMA, currently at $0.669, had served as a ceiling for ADA since late December. After briefly crossing above it in November and peaking at $1.24 in early December, Cardano struggled to maintain momentum, falling back below key levels amid profit-taking.

Throughout January and March, the 50-day SMA repeatedly rejected upward moves, while the 200-day SMA briefly acted as support before flipping to resistance in late March during a broader market pullback. Now, with ADA reclaiming both the 50-day and 200-day SMAs—the latter sitting at $0.783—the market is watching closely to determine if this breakout is sustainable or another short-lived spike.

Technical traders consider holding above the 200-day SMA critical for confirming a longer-term reversal. Should ADA sustain this momentum, a move toward the $1 psychological level appears possible. However, failure to hold above the SMAs could lead to renewed range-bound trading between the two moving averages.

With improving on-chain signals and bullish market sentiment, Cardano may be poised for further upside. Yet, upcoming price action will determine whether this recovery evolves into a full-scale rally or faces renewed resistance.