Cardano Pattern Hints at Possible ADA Breakout — Is a 97% Surge Coming?
Cardano (ADA) is showing potential for a bullish reversal as its daily Relative Strength Index (RSI) resets and forms a falling wedge pattern, a signal that drove a 97% rally in July. Currently trading at $0.5665, ADA has gained 4.2% this week but faced a 21% drop in the past month. Analysts suggest that a decisive breakout above the falling wedge ($0.67–$0.70) could see ADA rise to targets between $0.75 and $0.85, with the possibility of climbing as high as $1.1 if a similar 97% rise materializes. Key support lies at $0.50, with a breakdown below $0.47 threatening a fall toward $0.33. Long-term predictions from experts hint at ADA potentially reaching $4-$5 by 2025.
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RSI Reset and Falling Wedge Signal Potential Reversal
Cardano's RSI reset and the presence of a falling wedge pattern suggest a possible bullish reversal reminiscent of its July rally. According to The DApp Analyst, ADA's RSI has exhibited a pattern similar to that which preceded a 97% surge in July, when the token climbed within just 54 days. The falling wedge chart formation further underscores this potential, as upward momentum could soon develop if selling pressure diminishes.
Current Price and Weekly Performance Update
ADA is currently trading at $0.5665, marking a 1% gain in the past day and a cumulative 4.2% gain over the week. However, the token has experienced a notable 21% drop in the past month, reflecting broader market challenges. In contrast, ADA's sideways movement in April gave way to waning momentum in May, leading to its decline through June before staging the dramatic July rally.
Historical RSI and July Rally Insights
The July rally was triggered after ADA’s daily RSI reset to below the critical 40 mark, marking the exhaustion of bearish momentum. This RSI reset then provided the foundation for a substantial 97% price surge, bringing ADA to approximately $0.57. However, subsequent profit-taking in August initiated a fresh downtrend through September, eventually forming the falling wedge pattern in October.
Falling Wedge and Price Targets
The falling wedge formation suggests a weakening of selling pressure, with resistance levels projected at $0.67–$0.70, and current support levels observed between $0.47–$0.50. A decisive breakout above the wedge could push ADA's price toward $0.75 to $0.85, reflecting a 32% to 50% upside from current levels. Conversely, a breakdown below $0.47 might redirect market focus toward the $0.33 support zone.
Speculation on Larger Upsides
If ADA witnesses a similar 97% rally following an RSI reset, its price could climb to as high as $1.1. Beyond that, crypto analyst Mintern offered an even bolder projection, suggesting an eventual rise from $0.77 to a range of $4–$5 by 2025. Mintern's forecast has instilled renewed confidence among Cardano supporters, fueling optimism that ADA could reclaim and exceed its prior all-time high.
Key Levels and Additional Analyst Predictions
Crypto analyst Ali Martinez emphasized the critical importance of the $0.50 support level for ADA. Holding this threshold could pave the way for a rebound toward the $0.70 resistance level, which would mark a 23.4% gain from ADA's current price. However, ongoing resistance and liquidation events remain significant obstacles for bullish momentum.