- ADA’s monthly RSI and MACD show patterns that historically precede major rallies.
- Cardano forms a bullish triangle despite short-term volatility and consolidation risk.
- Breaking $1.25 could push ADA toward $2 and reignite talk of $5–$10 all-time highs.
Cardano (ADA) may be on the verge of a significant price breakout as several technical and macro indicators align with patterns seen in previous bull cycles. According to Crypto Capital Venture, an analytic firm analysis, ADA has been steadily forming higher lows since the bear market bottom, indicating a slow but consistent trend reversal.
Investors who have held through the turbulence are now seeing signs that a powerful upward move could be imminent. While short-term volatility remains a factor, the overall structure suggests that Cardano may soon leave its consolidation phase behind.
Key Technical Indicators Signal Momentum
One of the most compelling signs of a potential breakout is ADA’s behavior on the monthly RSI. The oscillator is now moving above its long-term average, a movement last seen during previous market upswings.
The MACD on the weekly chart has also shown a bullish crossover, a pattern that historically precedes strong rallies. Besides that, Cardano’s current risk score of 45 mirrors the scores seen just before past bullish surges. When ADA last hovered in this risk zone, it soon broke past previous swing highs and entered a sustained upward trend.
On the daily chart, ADA is forming a descending triangle, which often appears before major price swings. While descending triangles typically suggest bearish outcomes, history shows that ADA has broken upward from similar patterns before. Moreover, Cardano’s RSI just entered the overbought zone a sign that often marks the early stages of bull cycles, not the end of them.
Short-Term Volatility Could Precede a Surge
Despite the bullish momentum, a pullback remains possible in the short term. ADA might revisit the $0.70 or even $0.60 range before continuing its move higher. This type of retest would allow moving averages to catch up and set the stage for a more sustainable breakout.
Critical resistance lies around the $1.20 to $1.25 range. If ADA manages to surpass this zone, a run toward $1.75 or even $2 could follow.
Furthermore, macroeconomic conditions support the bullish outlook. With interest rates expected to decline and ETF narratives gaining traction, altcoins like Cardano may benefit. Notably, if ADA reaches the $2 level, discussions about testing previous all-time highs between $5 and $10 will gain traction.
