Cardano Set for Major Move, Analyst Signals Strong Upside

Currently trading at an attractive $0.71 level, Cardano (ADA), one of the top Layer 1 blockchain platforms, is receiving renewed bullish momentum. Influential chartist Maelius (@MaeliusCrypto) comments that price activity and technical indicators suggest ADA is turning toward a significant breakout. The analyst presented a full-fledged technical chart of ADA covering seven years in price history, implying a bullish scenario for the asset’s price to continue moving upward as ADA has retraced nearly 45% from the 2024 peak.

The analysis had previously been quite thorough, with the mention of important technical indicators, affirming the bullish outlook presented.

ADA’s Historical Trendline Intact Despite Correction

However, despite the drop from the high of late 2024, an analysis by Maelius points toward the idea that ADA has not violated an important rising dashed trendline, one which connects all market cycle lows since the COVID collapse back in 2020. In years past, this has served as a dynamic support zone, and it remains untouched.

Maelius recently made a post on X (previously Twitter) showing a chart that emphasized his follow-up comments on how this configuration continues to be extremely important for appreciating ADA’s current resistance. He believes that the latest downturn respected a very early demand zone between $0.57 and $0.78, leading to the formation of a higher low (HL), which is classically a bullish sign.

Bullish Signal from the 50-Week EMA Reclaim

It is a very strong technical confirmation on the part of Maelius’s analysis that ADA has reclaimed the 50-week Exponential Moving Average (EMA), which is now around $0.66. Now, ADA has printed two consecutive green weekly candles above this level, proving once again the re-emergence of bullish sentiment.

The moving average typically acts as a springboard. For example, during March 2024, ADA bounced off the 50-week EMA before moving almost vertically to register a higher high (HH) at close to $1.31, which was also at the upper boundary of the ascending price channel ADA has been following since 2020.

That channel’s upper boundary now stands close to $1.50, and Maelius postulates that a clean break of the current demand zone might be able to generate sufficient pressure to retest this zone of resistance.

RSI and Wave-Trend Oscillator Suggest Latent Strength

While price signals seem particularly strong, Maelius is waiting for confirmation by momentum indicators before taking the plunge.

The Relative Strength Index (RSI) on the weekly chart stands at 49. It’s a neutral level, indicating a tussle between the bulls and bears. However, the RSI is forming a series of higher lows just as is the price. It is still trading below the falling resistance line from the March 2024 high, where RSI almost reached a peak near 82.

Another significant momentum indicator that Maelius uses is the Wave-Trend Oscillator (WTO), which has a similar story to tell. It indicated bearish divergence at the 2024 top, has dipped down into oversold territory (~−50), and is now curling upwards, preparing for a potential bullish crossover between its fast and slow curves.

Maelius boiled it down in his post:

“ADA looks dope, or is it just me?! Would like to see RSI breakout w/ decisive move on WTO to get super-confident, but price will be higher when (and if) we get it.”

This is to say that confirmation of momentum is likely late on price, a tendency that was evident in previous ADA bull cycles in 2020 and 2023.

Unbroken Market Structure Still Signals Uptrend

From a purely structural viewpoint, Cardano continues to preserve its series of higher highs and higher lows, reinforcing the long-term view of an intact uptrend.

Significantly, the downtrend line drawn from ADA’s 2021 peak was broken over a year ago and, with the slight correction seen of late, looks less like a reversal and more like a throwback technical term referring to revisiting an earlier resistance-turned-support.

If ADA weekly candles continue to hold above $0.57 (lower edge of the demand zone) and the greater multi-year ascending trendline, then the path of least resistance is upwards.

Key Resistance Levels to Watch

An increasing momentum from here would likely see traders and investors eye the next possible areas of conflicting direction:

• $0.81 – the March 2024 swing high
• $1.31 – the December 2024 high and previous HH
• $1.50 – the upper boundary of the ascending price channel since 2020

A breakout past $0.81 could ignite a fresh rally to retest the $1.31 level, while reclaiming the channel’s upper wall at $1.50 would confirm a macro bullish continuation.

Institutional Optimism and Broader Sentiment

Beyond mere technical assessment, there seems to be a cheerful sentiment about the future of Cardano. Reports from the markets cited increasing interest from institutional players, and speculation about a possible ADA ETF has picked up steam. Some analysts say there is a 70% chance of an ETF approval in the near term, and that would be a major tailwind. 

Long-term price forecasts are also bullish. Grande dame models are calling for ADA in the range of $1.34 to $2.00 by 2025, while more aggressive forecasts see it testing $2.61 or more as adoption metrics and development activity continue to increase.

Eyes on Momentum Confirmation

Currently, we have ADA displaying so many bullish technical indicators in its price action, along with a strong reaction from the trendlines and EMAs. The demand zone between $0.57 and $0.78 is proving to be a strong ground floor. A clear advance past $0.81 would confirm the next leg higher.

Full confidence from the trader perspective, however, would require momentum confirmation, i.e., a breakout on the RSI above 60 and a bullish cross on the WTO. Historically, price has frequently moved ahead of momentum, so investors waiting on confirmation will probably find higher prices by the time the signals align.

As long as ADA respects current support levels and continues forming higher lows, the bullish view remains valid.