Cardano Nears Critical $1.247 Resistance as Analyst Eyes $10 Bull Target

• Cardano approaches crucial $1.247 resistance level after 30% two-week rally
• Futures volume hits $7 billion, highest in five months amid leverage surge
• Analyst projects $10.025 target following ascending trendline breakout

Cardano has approached a critical resistance level at $1.247 that could determine whether the cryptocurrency enters its next bull market phase according to analyst Dan Gambardello.

ADA rallied 20% last week following a previous week’s 10% gain, creating a two-week surge of 30% that briefly pushed it past Tron in market capitalization rankings.

The $1.247 level holds particular importance as it marks where ADA formed a lower high in April 2022, creating substantial supply resistance that has contained price action since. A clear break above this level, in Gambardello’s opinion, is a crucial bull market signal that would open the door to higher price goals.

Ascending Trendline Creates Secondary Resistance Target

Gambardello anticipates that Cardano will rise toward an ascending resistance trendline around $2.10 after breaking over $1.247. This trendline has previously blocked ADA’s advance during multiple attempts, most recently in December 2023 when the token peaked at $0.680 before retreating.

Cardano tested the resistance wall again in March 2024, reaching $0.810 before facing similar rejection and dropping to lower prices. The repeated failures at this trendline suggest ADA must achieve a convincing break above $2.10 to sustain momentum toward higher targets.

The analyst’s chart projects an ultimate surge to $10.025, which would establish a new all-time high for Cardano. This target, also projected by analyst Ssebi, would require a 993% rally from current levels around $0.917.

Futures Market Activity Signals Increased Speculation

Cardano’s leveraged trading interest has increased, as seen by the fact that last week’s futures volume hit $7 billion, the biggest level in five months. This happened on August 14th, when ADA surged to $1.02 overnight in face of general market weakness.

The volume spike contrasts sharply with the $1-3 billion range that characterized futures trading since March. Such dramatic increases in leveraged activity often precede major price movements as traders position for anticipated breakouts.

Sustained high volume in futures markets can amplify price movements in both directions, creating conditions for explosive rallies if bullish sentiment prevails. The timing of increased leverage coinciding with ADA’s approach to key resistance suggests traders are positioning for potential breakouts.

Current price action positions ADA just below the crucial $1.247 resistance that has contained rallies for over two years. The combination of technical resistance and futures market positioning creates conditions where a breakout could trigger significant upward movement.