Cardano is once again in focus as speculation around a potential U.S.-approved ETF surfaces. Market analyst CryptoPatel shared a technical chart indicating a possibility of ADA reaching $2.
Long-Term Channel and ADA Price Structure
ADA has been trending within a wide ascending channel since its breakout in 2020. The lower boundary of this channel has acted as support across multiple cycles, while the upper trendline has contained price surges. This structure provides a consistent framework for long-term analysis. In late 2020, ADA price broke above a sloping resistance line, marking the beginning of its uptrend. Since then, price has fluctuated but continued to respect both support and resistance boundaries.
Support Base and Accumulation Activity
A clear support base has formed between $0.24 and $0.35. ADA price tested this level multiple times from mid-2022 to 2024. This zone overlaps with the channel bottom and is identified as an accumulation area in the chart. Current ADA price near $0.5459 suggests a modest rebound from that zone. Recent candles show consolidation, which may suggest accumulation rather than immediate upward momentum.
ADA Price Analysis: Resistance and Long-Term Projections
A key resistance band exists between $1.00 and $1.45. ADA price has failed to close above this range during past rallies. If price approaches this zone again, it may encounter selling pressure. The Cardano chart also outlines a potential breakout path, with targets at $2.00 and $2.89. These align with long-term resistance levels and the upper channel trendline.
Speculation about a possible ETF approval is drawing renewed attention to Cardano. While technical analysis suggests clear support levels, ADA price might face challenges when approaching significant resistance levels. Understanding these factors is crucial for traders and investors.
