Cardano (ADA) is on a strong upward trend; can it break through $1?

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At the beginning of 2025, Cardano (ADA) surged 10% in a strong rebound, approaching the $1 mark. Is this the beginning of a recovery or a brief speculative frenzy?

Market recovery and key resistance

Although Bitcoin reached a new high of $108,000 in December, ADA has been out of sync and sluggish. Now, with market enthusiasm returning, ADA is nearing the psychological threshold of $1, becoming the focal point of attention.

Short squeeze boosts the rise

As the market warms up, the amount of short squeezes in ADA reached $1.78 million, triggering a chain reaction of rebounds. If it successfully breaks through $1, it may trigger “fear of missing out” (FOMO), attracting more capital into the market. However, maintaining this level remains a key challenge.

Technical analysis and outlook

RSI Indicator: Shows overbought signals, facing potential profit-taking pressure in the short term.

Support and resistance: After stabilizing at $1, it may test $1.25; if it fails, it may retreat to $0.85.

Summary

The strong rebound of Cardano injects confidence into the market, but whether it can break through and stabilize at $1 in the future will determine if it welcomes a new round of increases. Cautiously observe and seize potential opportunities.

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