Cardano (ADA), a leading cryptocurrency, has experienced a significant price increase recently, pushing its value above $0.48. This upward movement has allowed Cardano holders, who collectively possess $2.71 billion worth of ADA, to break even after enduring prolonged losses due to ongoing price drops.

According to the on-chain analytics platform Into The Block, Cardano addresses that acquired ADA at an average cost of $0.47 have now reached a break-even point. A continued rally from this point would result in these investments turning profitable. Analysts are optimistic about a potential rally, attributing it to the ADA/BTC pair hitting its lowest point recently.

Crypto analyst Sebastian highlighted encouraging signs for Cardano in comparison to Bitcoin (BTC) in a recent market analysis on X. Sebastian noted that the ADA/BTC chart seems to have hit its bottom, suggesting a possible bullish reversal. Trading View data showed that the pair reached a low of 0.00000680 on Thursday, May 16, before starting to rebound.

In the past 24 hours, ADA/BTC gained 0.28%, reaching 0.00000723. The presence of bullish divergence, a technical indicator suggesting a weakening downtrend, points to a potential upcoming rally in Cardano's price. Sebastian emphasized a critical resistance level at 0.0000079. If ADA surpasses this resistance, it could spark a more substantial rally, making Cardano an attractive option for investors aiming to maximize returns. Sebastian even suggested that now might be an ideal time to exchange BTC for ADA to benefit from the anticipated wave.

The price of Cardano neared $0.49, peaking at $0.4899 today. As of writing, ADA's price had risen by 1.21% to $0.4862 on Saturday, May 18. However, ADA's 24-hour trading volume decreased by 24.31% to $327.18 million, while the cryptocurrency's market cap stood at $17.31 billion.

Data from Coinglass showed that the open interest in Cardano futures remained steady at $289.77 million. Short sellers dominated liquidations as ADA's price rebounded, with short liquidations totaling $282.66 in the last 24 hours, significantly higher than long liquidations. These short liquidations could push ADA's price up before a potential downturn. Currently, ADA's value is above the 10-day EMA of 0.46, indicating a short-term bullish trend, though the long-term trend remains bearish as ADA trades below the 100-day and 200-day EMAs of 0.525 and 0.507, respectively.

In conclusion, Cardano's recent price surge has provided relief to holders, allowing them to break even. With promising signs of a potential rally against Bitcoin, Cardano might soon present profitable opportunities for investors.