Cardano (ADA) is back in traders' focus due to the emergence of a familiar pattern on the chart that has previously led to sharp price movements. The current situation may set the stage for a new rally.
Technical Analysis of Cardano (ADA) Chart
The chart posted by WorldOfChartsFX shows Cardano (ADA) breaking out of a descending wedge for the third time in two years. The current setup looks very similar to two previous rallies that led to explosive gains.
Historical Rallies of Cardano
The first rally occurred around October-November 2023, when ADA surged from around $0.28 to $0.73 – a 159% gain. The second rally happened in November 2024 when the price rose from $0.37 to $1.24 – a notable 233% increase. Both times, the price broke out of a descending wedge and confirmed the breakout with retests.
Current Situation and Predictions
Today, ADA is once again testing the same descending trendline that constrained the price for several months. There is a possibility of breakout above the resistance level of $0.62-$0.66, which ADA recently surpassed. If this breakout holds, projections indicate a potential rise to $1.40-$1.50. However, ADA must remain above the wedge to avoid a false breakout.
While the $1.50 target is not guaranteed, historical trends and the current technical setup suggest it is a feasible scenario if the overall market sentiment remains positive.
