Cardano ($ADA) has confirmed a bull flag on the weekly chart, indicating potential for price growth. The focus is on the $1.39 resistance level.
Bull Flag and Structural Outlook
The chart reflects a textbook bull flag breakout, which is one of the most reliable continuation patterns in technical analysis. ADA consolidated within a downward-sloping channel before pushing above resistance, signaling renewed control from buyers. This structure remains valid as long as price sustains above the breakout zone.
Fibonacci Levels and Potential Upside Targets
Drawing Fibonacci retracements from the 2021 cycle peak to the 2022 bottom reveals clear resistance zones. The 0.618 retracement is near $1.99, forming a strong medium-term objective for traders. Beyond that, the 0.786 retracement aligns around $2.48, offering another test level for momentum.
Short-Term Pressure and Market Conditions
While the broader outlook remains constructive, short-term action has leaned bearish. After peaking at $0.9038 on September 14, ADA retraced consistently. The $0.86 level now acts as a critical short-term support. In case of a sustained volume break, traders can observe the next support zone of $0.82-$0.80.
Despite short-term fluctuations, the bull flag on the chart points to the potential for reaching higher levels if the price can maintain above the key level at $1.39.
