Cardano (ADA) is showing renewed strength in May, up 17% over the month and currently retesting a critical breakout zone following a textbook Cup and Handle pattern. As the broader market recovers, ADA’s next move could determine whether the recent rally resumes—or loses momentum.

Cup and Handle Structure Faces Crucial Test

After breaking above neckline resistance near $0,74, ADA surged to a local high of $0.86. This move completed a bullish Cup and Handle formation—often a signal of trend continuation. However, a 15% retracement has brought the token back into the breakout zone between $0.71 and $0.74.

This area now acts as key support. Holding this level would suggest structural strength, especially with the 100-day moving average also converging near $0.718. A bounce from this zone could reignite bullish momentum, with the next upside target estimated around $0.98—a potential 35% gain from the current price.

Momentum Tied to Market-Wide Sentiment

ADA’s outlook remains intertwined with overall market dynamics. Ethereum’s recent rebound above $2,500 has lifted sentiment across major altcoins. If ETH climbs higher, ADA could follow suit and reclaim $0.86—confirming the next bullish leg.

On the other hand, a breakdown below $0.71 would invalidate the Cup and Handle pattern and may lead to further descension toward $0.65 or lower. As trading volume consolidates, ADA is at a crossroads—and its next decisive move will likely set the tone for the remainder of Q2.

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