Cardano (ADA) Price Prediction: Is a Major Breakout Imminent?
Cardano (ADA), currently trading around $0.71, shows promising signs of a significant price surge, according to veteran chartist Maelius (@MaeliusCrypto).
Maelius’s compelling analysis, which condenses seven years of ADA/USD price history, reveals a robust underlying bullish structure. Despite a recent 45% retracement from its late-2024 peak, ADA has consistently held above a crucial rising trendline since the 2020 market crash. The recent dip found support within a well-established demand zone between $0.57 and $0.80, forming a textbook higher low and decisively reclaiming its 50-week exponential moving average.
This positive price action mirrors a similar pattern observed in March 2024, which propelled ADA to a high near $1.31. With the upper channel boundary now near $1.50, Maelius suggests a breakout from the demand zone could reignite momentum, potentially retesting this ceiling.
Momentum Indicators: A Tale of Two Stories
While price action appears bullish, momentum indicators present a slightly more nuanced picture. The weekly Relative Strength Index (RSI) is hovering around 49, forming a falling wedge pattern but showing higher lows, suggesting accumulating bullish momentum. Similarly, the Wave-Trend Oscillator, though displaying a bearish divergence earlier, is now curving upward, potentially indicating an impending bullish crossover.
“ADA looks dope,” Maelius noted, acknowledging that while full confirmation from momentum indicators is pending, the price action itself strongly suggests upward trajectory. Past instances show that momentum confirmation often lags behind price movements in ADA’s bullish cycles.
Market Structure: A Bullish Outlook
From a pure market structure perspective, ADA continues its sequence of higher highs and higher lows on the weekly chart. The previous downtrend line from the 2021 high was broken over a year ago, and the recent correction seems to be a healthy pullback to new support. As long as the price holds above the lower boundary of the demand zone (~$0.57) and the rising trendline, the path of least resistance points upwards.
Key resistance levels lie near $0.81 (March 2024 swing high), $1.31 (December 2024 high), and the upper channel wall around $1.50. A bullish RSI crossing above 60, coupled with a bullish crossover on the Wave-Trend Oscillator, could solidify this positive outlook and amplify the potential for substantial price appreciation.
At the time of writing, ADA is trading at $0.709. This analysis is based on information available at the time of writing and does not constitute financial advice.
Featured image created with DALL-E, chart from TradingView.com