Cardano (ADA) Tests Resistance, Eyes 185% Rally

Cardano (ADA) has once again captured the attention of traders this week as a familiar chart pattern has reemerged, one that has historically led to significant price movements. According to a recent tweet from World of Charts, ADA is currently testing the upper boundary of a long-term descending channel, which could potentially lead to a breakout that sends the price as high as $1.50.

The current setup bears a striking resemblance to two previous rallies that resulted in gains of over 150% and 230%, respectively. With ADA trading near $0.75 and pushing against resistance, the focus is now on whether the bulls can deliver the anticipated breakout or if this will turn out to be another false alarm.

The chart analysis provided by WorldOfChartsFX shows Cardano (ADA) breaking out of a falling wedge formation for the third time in two years. The current setup is very similar to two previous breakouts that led to substantial gains. The first breakout occurred around October–November 2023, where ADA rallied from approximately $0.28 to $0.73, a 159% move. The breakout was clean, followed by strong bullish candles and increased volume, leading to further price consolidation before continuing higher.

A similar breakout occurred again in November 2024, where ADA surged from around $0.37 to $1.24, an increase of 233%. The pattern was again a breakout from a descending wedge, with the price pushing past horizontal resistance and confirming with a retest before liftoff.

Currently, ADA is testing the same descending trendline that capped the last nine months of price action. The red box in the chart marks horizontal resistance around $0.62–$0.66, which ADA has just broken above. The wedge is narrowing, and the price has already closed outside the upper trendline. If this breakout holds, the setup is structurally similar to the last two rallies. The measured move on this chart projects a potential 185% rally, which would take ADA to about $1.40–$1.50, just shy of its November 2024 high.

The structure of the current setup looks solid. Historically, falling wedge breakouts in ADA have delivered strong follow-through when backed by volume and confirmation. In both 2023 and 2024, the rallies did not stop after initial resistance; they extended over weeks with few deep pullbacks. If current market conditions remain bullish and Bitcoin does not reverse sharply, this breakout has room to run. A clean retest of the red box ($0.62–$0.66) would further strengthen the case. However, ADA must hold above the wedge to avoid a fakeout. If it falls back inside the pattern, bulls could lose momentum.

The $1.50 target is far from guaranteed, but based on past price behavior and this clean technical setup, it is within reach, especially if sentiment stays strong.