Cardano (ADA) has shown renewed strength this week, jumping to $0.6320—its highest level in nearly a month—fueled by a broader market rebound and a resurgence in Snek, a leading meme coin in its ecosystem.
The move marks a 25% recovery from its July low, with daily trading volume surging 87% to over $1.1 billion, according to CoinMarketCap.
Analysts now point to a strong technical setup forming on the daily chart: a double-bottom pattern around the $0.5086 support zone, observed in both April and June. This formation typically suggests selling exhaustion and potential for reversal. The neckline of the pattern sits at $0.8630—roughly 40% above current prices—marking the next key resistance.
Momentum indicators are also turning positive. ADA’s RSI has climbed from oversold levels near 29 to 56, while the MACD lines have crossed bullishly and are approaching the zero line, hinting at increasing buying strength.
A decisive breakout above the $0.8630 neckline could open the door to further gains toward the $1.20 region, which aligns with the projected target of the double-bottom formation—representing a potential 93% rally from current levels. However, traders will be watching the $0.50 support closely. A breakdown below this level would invalidate the bullish setup and potentially trigger a new wave of selling.
Cardano’s recent momentum also coincides with renewed investor interest in alternative layer-1 platforms as capital starts rotating out of Bitcoin following its all-time highs. If market conditions remain favorable and trading volume continues to rise, ADA could be one of the key beneficiaries of the next altcoin wave.
Alexander Zdravkov
Reporter at Coindoo
Alexander Zdravkov is a person who always looks for the logic behind things. He is fluent in German and has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
Source: https://coindoo.com/market/cardano-eyes-breakout-as-bullish-pattern-signals-possible-40-rally/