ADA forms bullish cup and handle pattern with $4.00 breakout target

ADA's recent price movements have sparked renewed optimism among analysts, who are drawing parallels between the cryptocurrency's current chart formation and its historic 2020–2021 bull run. A prominent bullish pattern, the "cup and handle," is now in focus. If Cardano’s native token, ADA, can break above the $0.92 resistance level with sufficient volume, it may trigger a move toward $4.00, offering a potential 4x return from its current price of around $0.78 [2]. This pattern has been developing over the past three years and has drawn attention from key figures in the crypto space, such as CryptoSmith0x, who has highlighted its significance on X [1].

The pattern's base, or the "cup," initially formed between $0.50 and $0.60, while the "handle" has been consolidating below $0.80. Analysts note that a clean breakout from this consolidation could be a precursor to further gains. Some projections, including those from Stake With Pride, suggest a $1.50 mid-term target before the more ambitious $4.00 level is in play [1]. The growing number of bullish signals is supported by strong on-chain metrics, such as the deployment of over 300,000 smart contracts on the Cardano network since the Alonzo upgrade [6], signaling continued ecosystem development and adoption.

Fundamental confidence is also rising. WhaleFUD, a well-regarded crypto analyst, emphasized that Cardano has never been stronger from a foundational perspective. This sentiment is echoed in broader market reactions, including ADA's inclusion in a recent White House crypto policy report, which highlights its increasing relevance in regulatory discussions [1]. Meanwhile, whale accumulation appears to be tapering off, a sign often seen before a significant price move [7].

On the technical front, Fibonacci retracement levels are reinforcing bullish expectations. ADA is currently near the 0.5 retracement level at $0.85, a key threshold before reaching the 1.0 extension of $3.09 and potentially $6.25 in a more aggressive scenario [1]. These levels, if reached, would align with historical breakout patterns, suggesting a potential multi-fold rally.

Speculative momentum is also growing around the possibility of an ADA ETF approval, with odds currently at 83% [8]. While these forecasts remain speculative, they reflect the broader market's confidence in ADA's ability to break out of its current range. Traders and investors are now closely monitoring whether the $0.92 level will act as a breakout trigger or a retest point.

As the market awaits confirmation of the bullish pattern, the alignment of technical and fundamental factors is creating a compelling case for ADA. Should the projected breakout occur, it could signal a new chapter in Cardano's price journey.

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Source:

[1] https://cryptonewsland.com/ada-eyes-4-breakout/

[2] https://thecryptobasic.com/2025/08/01/cardano-could-soar-to-6-soon-as-ada-repeats-historic-price-structure-analyst/

[3] https://www.ainvest.com/news/bitcoin-news-today-cardano-ada-price-targets-4-etf-approval-odds-hit-83-2508/

[4] https://www.ainvest.com/news/cardano-ada-price-structure-mirrors-cycle-potentially-explosive-move-2508/

[5] https://cryptorank.io/news/feed/96f49-ada-cup-handle-pattern-4-dollar-target

[6] https://coincentral.com/cardano-ada-price-bullish-chart-pattern-signal-potential-rally-to-4-00/

[7] https://coingape.com/analyst-predicts-cardano-price-rally-to-4-as-etf-approval-odds-climb-to-83/