Cardano's ADA Poised for 10% Rally as Bullish Pattern Emerges

As the weekend approaches, the overall cryptocurrency market has shown signs of recovery, indicating an upward rally. Among the cryptocurrencies experiencing this resurgence, ADA, the native token of the Cardano blockchain, is displaying bullish tendencies and is poised for a significant rally in the coming days.

Technical analysis suggests that ADA has formed a bullish inverted head and shoulders pattern, which is on the verge of a breakout. If the asset breaches the pattern’s neckline and closes a four-hour candle above the $0.76 level, it could initially soar by 10% to reach $0.85 in the coming days. However, this bullish outlook is contingent on ADA breaching the $0.76 level, as the 200 Exponential Moving Average (EMA) currently indicates a downtrend, which could pose resistance.

On a longer time frame, ADA appears to be consolidating within a tight range between $0.73 and $0.757 over the past five trading days and is now attempting to break out. If the asset breaches this consolidation and closes a daily candle above the $0.76 level, it could soar significantly by 50% to reach $1.15 in the coming days.

At the time of reporting, both bulls and bears are making strong bets on the asset. Data from an on-chain analytics firm reveals that traders are currently over-leveraged at $0.723 on the lower side, with $12 million worth of long positions. Meanwhile, $0.765 is another over-leveraged level, where traders have held $10.50 million worth of ADA tokens.

Cardano (ADA) is currently trading at approximately $0.7380, marking a 2.53% increase. The MVRV-Z Score, which stands at 76.5377, indicates that the cryptocurrency is neither overbought nor oversold, suggesting potential volatility ahead. Analysts predict that if Cardano successfully breaks through the neckline and closes a candle above $0.76, it could trigger a strong rally toward $1.15. This optimistic outlook is supported by the technical indicators, which signal an 8.97% increase in value, reaching $0.817 by March 17, 2025. The forecast for the end of March 2025 is $0.6002, reflecting a -5.9% change from the beginning of the month. Looking further ahead, the price prediction for March 2026 is $0.6359, indicating a 4.0% increase from the beginning of the month. The long-term forecast for Cardano remains bullish, with predictions suggesting that the cryptocurrency could reach as high as $13 under a future Trump presidency, positioning it as one of the leading blockchain assets. Additionally, analysts have projected that Cardano could reach $7 by mid-2025, further bolstering its potential for growth. However, it is important to note that the cryptocurrency market is highly volatile, and these predictions should be taken with caution.