Cardano (ADA) Shows Bullish Signals With 8.52% Volume Increase

Cardano (ADA) has recently displayed a potential inverse head and shoulders pattern on its 4-hour chart, a technical formation that often signals a bullish reversal. This pattern has garnered attention as ADA attempts to reclaim its 50-period moving average (50MA), a key resistance level. At the time of reporting, ADA is trading at $0.5644.

According to an observation by Sssebi, the structure forming on the 4-hour chart resembles an inverse head and shoulders. This pattern typically signals a shift from a bearish to a bullish trend. For this pattern to confirm, ADA needs to break and hold above the 50MA. Volume is a key factor in this confirmation. If ADA crosses the 50MA with rising trading volume, then price action could target the upper trendline of the falling channel. Based on the current chart setup, this target is near $0.65.

CryptoSmith also pointed out that ADA is approaching a critical trendline. A similar past breakout resulted in a 240% price increase, with analysts suggesting that a new breakout could push ADA toward $2.60 again.

Trading volume over the past 24 hours increased by 8.52%, reaching $657.95 million. This reflects steady investor participation as ADA attempts a recovery from its recent decline. The broader crypto market also rose 1.44% in the same period, providing some momentum. ADA’s market cap stands at $19.96 billion, ranking it 10th among all digital assets. Futures traders have placed bets equivalent to $694 million on ADA, which could add support if buying continues.

The current circulating supply is 35.37 billion ADA out of a total cap of 45 billion, maintaining scarcity in the market. If ADA sustains buying interest and breaks above key technical levels, the structure may lead to further gains.

Cardano (ADA) has recently exhibited bullish signals across various timeframes, with analysts suggesting a potential breakout that mirrors Bitcoin's early cycle setup. After a period of sideways price action and uncertainty, ADA is now displaying positive indicators that could signal more than just a temporary rebound. The cryptocurrency is backed by strong technical patterns, including a potential fractal match with Bitcoin’s 2013–2017 cycle. This comparison highlights a similar Wyckoff-style “Sign of Strength” (SOS) zone forming in ADA’s current structure, akin to BTC’s consolidation before its significant breakout. If this structural similarity materializes, ADA could be poised for a substantial upward move.

Technically, the setup suggests a clear reaccumulation pattern following a multi-month range. Analyst Gajewskey targets a price range of $4 to $8 for ADA, although it is important to note that fractals have their limitations and do not guarantee future performance. However, if this fractal plays out, it could paint a bullish roadmap for Cardano.

On the higher timeframes, ADA’s behavior is adding more weight to the bullish narrative. On the 2-week chart, Cardano has managed to break above the Ichimoku Cloud and has been steadily retesting the top of the cloud as support since early 2025. This type of sustained interaction with the cloud top is often seen in early stages of trend reversals or major reaccumulation phases. ADA hasn’t closed a single candle back inside the cloud below $0.55 despite broader market volatility. When combined with the earlier Wyckoff-style “Sign of Strength” formation and the emerging macro structure, it strengthens the case that ADA might not just be mirroring BTC’s early-cycle setup; it is actively following it through.

Cardano’s liquidation heatmap is now showing a cluster of short liquidations building just above the $0.60 zone. This concentration of open short interest suggests that if ADA pushes just a little higher above $0.60, it could trigger a wave of liquidations. Between $0.59 and $0.62, there’s over $4 million in short positions stacked up. This creates a high-liquidity pocket that price tends to move towards, especially during a momentum shift.

On the short-term chart, Cardano’s 4-hour timeframe is showing signs of reversal. Analyst Av_Sebastian has mapped out a clear inverse head and shoulders pattern. Price is now attempting to break above the neckline, but first needs to clear the 50-moving average, which has acted as a dynamic resistance over the last few weeks. If bulls can get through that, the next target sits near the top of the falling channel, around $0.65. This pattern adds short-term confirmation to what we’ve already seen on the higher timeframes. Av_Sebastian is backing the idea that ADA isn’t just primed for a short-term bounce but could eventually reclaim its place among the top assets. That kind of sentiment, especially when paired with a clean reversal pattern and supportive community momentum, is a positive sign. If price clears the neckline and breaks above the 50-MA with volume, it could shift the short-term narrative and open the door for broader recovery.

In conclusion, Cardano is showing some powerful signs that it could be in the early stages of a major trend shift, not just on the charts but across market sentiment too. From the Wyckoff-style SOS zone to the Ichimoku breakout and a clean inverse head and shoulders pattern, ADA’s technicals are lining up like they did for Bitcoin in past cycles. The short-term $0.62 liquidity zone will be key. If ADA can flip that level with strong volume, it could unlock a move toward much higher levels.