Cardano breaks falling wedge as geopolitical risks cap upside

Cardano held above $0.40 on Monday after closing above a falling wedge pattern, signalling a bullish technical breakout.

Derivatives data shows improving sentiment, with Cardano futures open interest rising to $851.17 million, the highest level since mid-December.

Long positions increased as the long-to-short ratio climbed to 1.06, indicating growing bullish positioning among traders.

Technical indicators support upside momentum, with the RSI at 55 and the MACD showing a bullish crossover.

Analysts say ADA could test resistance near $0.42, with a potential move towards $0.49 if momentum holds.

Downside risks remain, with a pullback potentially revisiting the $0.32 support level.

Rising geopolitical tensions have introduced caution into risk markets, weighing on further upside.

The US carried out a military operation in Venezuela over the weekend, capturing President Nicolás Maduro.

Maduro and his wife both will face US justice.

Donald Trump said.

Trump later raised concerns over Colombia, adding uncertainty that could pressure risk assets such as ADA.

Ongoing conflicts in Eastern Europe and the Middle East continue to support a stronger US dollar, limiting crypto gains.

At the time of reporting, Cardano price was $0.398.