Cardano falls 3.3% after technical breakout

• Cardano fell 3.29% over 24 hours despite breaking above a long-term downtrend resistance line.
• The cryptocurrency traded at US$0.1896 with US$1.10 billion in daily trading volume and a US$6.91 billion market capitalisation.
• Technical indicators suggest improving momentum, although analysts say further confirmation is needed before a sustained recovery can be established.

Cardano (CRYPTO:ADA) traded at US$0.1896 after breaking above a long-term downtrend resistance line, although the cryptocurrency declined 3.29% over the past 24 hours despite recording US$1.10 billion in trading volume and a market capitalisation of US$6.91 billion.

The latest price action follows an extended period of weakness, with technical indicators pointing to improving buying interest even as short-term market sentiment remains cautious.

Analysts said Cardano's attempts to test the upper Bollinger Band indicate increasing buying pressure, but they added that a sustained recovery would require the cryptocurrency to close above that resistance level.

The Moving Average Convergence Divergence (MACD) indicator also improved, with the MACD line rising to 0.00723 above the signal line at negative 0.00279, while the histogram increased to 0.01002, suggesting strengthening upward momentum.

Analysts said further gains will depend on whether Cardano can remain above its 200-day exponential moving average and confirm the breakout, and Cardano's price was down 3.29% at US$0.1896 at the time of writing.

If the breakout holds, analysts believe buyers could target higher price levels, although they cautioned that a move below key support could lead to a period of sideways trading.

Cardano remains one of the larger cryptocurrencies by market value, and traders are closely monitoring whether improving technical indicators translate into a sustained trend reversal over the coming trading sessions.

At the time of reporting, Cardano price was $0.1895.