Cardano’s ADA Price Surges 75% as Technical Indicators Signal Continued Rally Potential
ADA (Cardano) has experienced a substantial price appreciation, surging over 75% since mid-June, suggesting the ongoing uptrend is gathering significant momentum and signaling the potential conclusion to a prolonged downtrend.
Key Takeaways
- ADA price has climbed more than 75% since June 22, benchmarks likely marking the end of a multi-month downtrend.
- Multiple bullish chart signals and technical indicators on various timeframes suggest ADA can climb significantly, with targets including $2.70 – representing a near 200% gain from recent lows.
ADA’s price surged to a new 20-week high of approximately $0.89 recently, following gains that pushed it up by roughly 9% over the preceding 24 hours.
ADA Bollinger Bands: Potential Trigger for Upside Move
ADA may possess the fuel for further significant gains, contingent on specific technical signals materializing. Current Bollinger Bands (BB) indicate a potential shift towards increased volatility, possibly heralding an upside breakout.
The ADA/USD weekly candlestick recently encountered the upper Bollinger Band. Historically, price touching the upper band has often preceded periods of heightened upside volatility. This occurrence is further reinforced by the bands commencing to “squeeze,” a precursor pattern frequently associated with subsequent sharp moves.
Past instances of ADA breaking above the upper band have been correlated with substantial rallies: 1,500% in 2021, 117% in 2022, and 300% in 2024.
Cardano Price Shows Multiple Bullish Signals
Despite the recent rally pushing the price towards $0.89, it remains nearly four times below its previous all-time high of $3.10 set in 2021.
However, the price action on multiple timeframes has generated numerous bullish technical signals, pointing towardsescalating trend momentum.
Chart Breakout: ADA broke out of a definitive bull flag pattern on the weekly chart. This breakout superseded the flag’s upper boundary and positioned the 50-day Simple Moving Average (SMA) and the 200-day SMA as potential support zones. The measured target of this bull flag hovers near $2.70.
Historic Confirmation: This breakout was corroborated by a ‘golden cross,’ an event where the 50-day SMA definitively crossed above the 200-day SMA last week. This move typically signifies strengthening bullish momentum.
Resilient Momentum: Additionally, the Moving Average Convergence Divergence (MACD) indicator validated the bull flag breakout, displaying a bullish crossover and subsequent build-up of positive momentum after a period of bearish dominance in early 2025.
RSI Room for Run: A key factor supporting the potential for further gains is the Relative Strength Index (RSI). The ADA’s weak daily RSI (80) currently indicates it hasn’t yet reached the extreme overbought territory seen at major tops historically (e.g., late 2018, late 2021, Dec 2024), suggesting continued upside potential. A widely followed pseudonymous analyst identifies this level as a potential inflection point, forecasting a potential 130% follow-on increase to the $1.80 target if the RSI does touch this threshold.
This analysis does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
