Key Insights
- Cardano’s price has just disappeared from a long-term downtrend after over 250 days.
- Technical indicators and patterns show that the asset could look at gains of up to $2.06.
- Long-term holder confidence has been strong, with 15 billion ADA unmoved for a year.
Cardano price has surged to its highest level in five months. This came after the asset was stuck inside a parallel channel since late last year.
The breakout also comes after ADA tested the channel’s support line three times this year. Also, it formed a triple bottom pattern around the $0.60 level.
Analysts believe a strong upward move could result when this structure is paired with the ongoing rise in market momentum.
Strong Technical Signals Support the Cardano Price Rally
According to the charts, technical indicators have turned bullish for the Cardano price. For example, the Relative Strength Index (RSI) has crossed above 50, which is often associated with bullish dominance.
In addition to this, the Moving Average Convergence Divergence (MACD) has completed a bullish crossover according to the charts.
Analysts believe that previous occurrences of this setup led to rallies of 176% and 316%. This means that even if Cardano matches the lower end of that range, ADA could climb to around $2.06. This could be seen before the year ends.
Cardano Price Targets With $1.84 to $2.06 in Focus
According to the charts, the Cardano price may be in the third wave of a five-wave upward cycle. This stage is often the most aggressive part of an uptrend.
Also, if this count holds, ADA could reach $1.84 in the coming weeks, possibly extending towards.
Some analysts see even higher targets in play, like Javon Marks. Marks recently noted on X that the Cardano price could move towards $1.20 in the short term.
This move will likely be followed by a longer rally toward $2.90. This would represent a gain of nearly 200% from current levels.
Bull Flag Breakout Adds to Optimism
An ongoing breakout from a bull flag pattern on the three-day chart also supports the moves of ADA. According to analyst Clifton Fx, this formation leads to extended rallies.
The analyst noted that predictions from the breakout point indicate that Cardano price ould rise by 100% to 150%. It could even target the $1.60 to $1.75 range.
The breakout has recently put ADA among the top-performing large-cap cryptocurrencies. The asset is gaining about 20% in the past 24 hours alone.
Long-Term Holders are Showing Strong Conviction
On-chain data from TapTools shows that over 15 billion ADA tokens have been unmoved for more than a year. This kind of patient holding indicates that selling pressure has reduced lately and investors are becoming more confident.
Retail interest is also picking up. Google Trends data indicates that searches for “Cardano” are at their highest since March. On the other hand, “altcoin” searches are at their strongest in the last four years.
This increase in attention could drive more trading activity toward ADA over the next few weeks.
What Could Derail the Rally
While the outlook for Cardano price is currently positive, analysts are warning of possible risks for investors. If ADA fails to maintain its position above its significant resistance levels, a reversal is possible.
For example, the $0.99 to $1 price range now serves as a significant price floor. This means that a break below would invalidate any bullish outlooks and lead to a decline.
Overall, if technical patterns and the market’s strength continue at this pace, ADA remains on track for new highs.
The asset has targets between $1.84 and $2.06, which are regarded as realistic in the near term. However, further price targets could go as high as $2.50 if the market’s conditions remain favorable.
