Cardano (ADA) price has shown signs of renewed strength as it traded above $0.63. The asset is rebounding from key support levels after recent pullbacks. According to analysts, technical patterns and historical trends point to the possibility of a major breakout.
Crypto Patel and Javon Marks, therefore, presented two different bullish outlooks. Both point to accumulation steps, rising channels, and multi-dollar targets from clean setups. These technical indicators supported the existing sentiment and derivative, indicating growing interest in ADA’s next steps.
Analyst Identified Long-Term Channel With Target at $5
Crypto Patel has outlined a long-term channel formation on ADA’s weekly chart. According to Patel, ADA price has maintained a strong support zone at $0.45, with the accumulation range between $0.45 and $0.65 being a prime area for long-term positioning. His analysis showed that the price has respected this channel multiple times since 2020.
Furthermore, the chart also identified resistance at $1.17 and $2.92. Patel sees top altcoin price moving toward $2, $4, and ultimately $5, assuming the price continues respecting the channel boundaries.
The chart suggested that as long as ADA price remains within the ascending range, the bullish case remains valid. Patel has described the current zone as one that could print fortunes for patient holders.
Cardano Price Formed Bull Flag Pattern With $2.91 Target
Additionally, crypto analyst Javon Marks recently shared a chart that placed Cardano price in a bullish flag structure, formed over the last several months. The flagpole and consolidation zone replicate a historic pattern observed in previous Cardano rallies.
Marks projected that ADA price could break out of this formation and rise 354% from its recent lows. This would place the next target around $2.91, mirroring past behavior during large bull cycles.
Notably, in his chart, Cardano price has gone past the descending channel’s resistance level and is reversing back to considering the breakout region.
The retest is essential in confirming the flag breakout. He used the historical example, which illustrated that a similar structure occurred, and ADA price rose both in terms of volume and price action setups.
Cardano Price Technical Indicators Align With Analyst Targets
In a short-term perspective, it can be seen that on the 4-hour chart, ADA price formed a bullish pattern with strong MACD and Bollinger Bands indicators.
After touching $0.58, a recovery up to $0.63 was preceded by a bullish engulfing candlestick that formed a morning-star reversal pattern. This move has brought the top altcoin price very close to the 50% Fibonacci retracement level.
The 61.8% Fibonacci level is located at $0.66, which has been a resistance level. Moving above this level can affirm the new trend and create the potentialities for passing through $0.76 and beyond. The Bollinger Bands are widening, and that is a sign that price action might extend in the general direction of the trend.
More so, the MACD histogram bars are rising, and the signal line is crossing up into the ‘buy’ zone. These are in accord with the technicalities as defined by Patel and Marks. The indicators help to build the case for a rally, based on a technical rather than a fundamental or short-term change of sentiment.
Derivatives Market Showed Supportive Metrics
Data from Coinglass shows that ADA’s open interest currently stands at $639 million. This reflects sustained activity in futures markets. The long-to-short ratio has climbed to 1.3288, indicating that 57.06% of traders are maintaining long positions. This suggests a directional bias in favor of ADA’s price increase.
Funding rates are at 0.0035%, indicating that markets are not overleveraged to one side. This balanced structure helps maintain healthier price fluctuations without provoking further cross liquidations. These derivative metrics supplement the technical analysis that Patel and Marks provided.
The post Cardano (ADA) Price Gains Momentum: Analysts Predict Rally To $5 appeared first on The Coin Republic.
