Cardano (ADA) Poised for 9% Rally as Bullish Momentum Builds

As the third quarter of 2025 begins, the cryptocurrency market continues to build on the momentum from the second quarter, with Ethereum (ETH) leading the charge with a 4% increase over the past week, currently trading near $2,515. This bullish trend is lifting overall market sentiment, and Cardano (ADA) is emerging as a potential candidate for the next significant rally among altcoins.

While ADA has seen modest gains recently, its technical indicators suggest a powerful bullish signal—a pattern that has historically preceded substantial price movements. According to crypto analyst Jonathan Carter, Cardano has formed a broadening wedge pattern on the 3-day chart, a formation often observed before major trend reversals. This is the third consecutive bullish setup for ADA over the past year, with each previous pattern triggering significant rallies.

The pattern is developing just above a crucial long-term support zone between $0.24 and $0.26, where buyers have intervened multiple times in the past. ADA has also broken above the descending resistance line of the wedge and is currently hovering just above the 50-day moving average (MA), around $0.69. Volume is gradually increasing, and the Relative Strength Index (RSI) has started to curve upwards from oversold territory, further supporting the possibility of an imminent breakout.

If ADA sustains its momentum and confirms a clean breakout above the 50-day MA and the wedge structure, bulls could drive the price toward the next key resistance levels. Immediate upside targets are at $0.80, $1.00, and potentially $1.30, aligning with the previous resistance zone shown on the chart. However, traders should monitor the broader market for confirmation, as a rejection near the 50-day MA or a sudden market reversal could delay the upside scenario.

Cardano (ADA) is currently consolidating above its recent support zone, with buyers aggressively pushing the price higher. This bullish reversal setup suggests a potential breakout, with analysts identifying the current $0.57–$0.58 range as a “golden box” for potential entry. Upside targets on a breakout are between $0.60 and $0.66, according to analysts' forecasts. The bullish sentiment is further supported by the Cardano Fear and Greed Index, which indicates that the current bullish momentum is likely to continue.

A bullish candle close above the upper bound of the current channel would confirm a breakout and expose higher resistance levels at $0.648 and $0.679. This breakout could potentially lead to a 9% rally if the current level holds, as indicated by the Head and Shoulders pattern on the TradingView chart. However, it is important to note that Cardano has faced strong rejection near the $0.6121 resistance level, showing clear signs of exhaustion after its vertical pump. This could potentially lead to a bearish reversal, with a short tread signal indicating a potential downturn.

In conclusion, while Cardano (ADA) is showing strong bullish sentiment and potential for a breakout rally, it is important to monitor key resistance levels and market sentiment to make informed trading decisions. The current bullish momentum is supported by various indicators and analysts' forecasts, but caution should be exercised due to the potential for a bearish reversal.