The price of ADA stands on the brink of a breakout as the amount of profitable tokens rises to the sky.

Cardano (ADA) recorded a slight fall of 1% at the time of writing this article on Friday, temporarily slowing the bounce back after the attempt to break out of the descending price channel pattern. However, the positive trend over the past week has still helped bring an additional 2.34 billion ADA into the profit zone – a signal that may strengthen buying power. On the technical side, Cardano is approaching an important turning point, as the tug-of-war between buyers and sellers remains unresolved, causing the breakout momentum to continue to be delayed.

The amount of profitable ADA increased by an additional 2.34 billion tokens in July

According to data from Santiment, the number of profitable ADA tokens surged to 18.23 billion on Friday, a significant increase from the 15.89 billion recorded on Tuesday. In just a few days, an additional 2.34 billion ADA returned to the profit zone – a remarkable figure that clearly reflects the ongoing bounce back trend since the beginning of July and the potential to drive new buying power.

The total supply of Cardano is currently profitable | Source: SantimentIt is important to note that "profitable tokens" are those tokens that were purchased or moved at prices lower than the current market price. However, this rapid increase also brings a significant risk: a wave of profit-taking may occur as many investors choose to realize their profits.

Cardano may break out of the falling price channel, aiming for a target of $0.71

After a strong increase of 10% in the previous two days, the bounce back momentum of Cardano began to stagnate, resulting in a slight adjustment of just over 1% at the time of writing on Friday. Notably, the temporary peak at $0.6119 on Thursday – before ADA closed at $0.5992 – clearly reflects the increasing selling pressure at the high zone.

On the chart, a descending price channel has formed from the resistance line connecting the peaks of May 23 and June 10, parallel to the support line connecting the troughs of May 19 and June 5. Currently, ADA is fluctuating near the resistance line of the channel, but has not yet been able to achieve a decisive breakout – a signal that indicates the bulls still lack the momentum to dominate the market.

If this coin can close the day positively, the momentum may restart and head towards the zone around $0.7100 – corresponding to the low on May 19, which has now become resistance.

ADA/USDT Daily Chart | Source: TradingViewHowever, the technical indicators are still sending mixed signals. The MACD shows that the green histogram bars are expanding above the centerline, reinforcing the bullish outlook. Nevertheless, both the MACD line and the signal line remain in the negative zone – a sign that the recovery force is still in the accumulation phase and not strong enough to confirm a clear trend reversal.

The relative strength index (RSI) is currently at 47, after failing to break the neutral threshold of 50 – indicating that the bullish momentum has not yet been firmly established.

On the contrary, if ADA closes below the opening price on Thursday at $0.5840, the fall momentum could bring the price back to the support zone of $0.5419 – which is also the closing level in the session on June 22.

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