Cardano Breaks Out of Triangle Pattern as Bullish Momentum Surges 1,150%

Cardano (ADA) is gaining traction among traders and investors as a potential breakout candidate, fueled by a key technical chart pattern and accumulating bullish momentum. Analysts are pointing to a descending triangle pattern on the ADA/USDT daily chart, formed over the past eight months, that has now broken out with significant volume. This pattern typically signals a continuation of the trend, and if history repeats, ADA could be heading toward a $1.30 target—suggesting a potential 1,150% return from current levels [1].

The recent price action shows ADA rebounding from the 0.618 Fibonacci level, a common support during steep corrections. With the RSI re-entering bullish territory above 55 and the MACD forming a golden cross above the signal line, momentum indicators are flashing green for the first time since January [1]. These signals suggest a growing dominance of buyers and a potential mid-term uptrend taking shape.

Whale activity has also intensified, with over 200 million ADA tokens bought in just 48 hours, indicating growing confidence in the asset’s long-term potential [1]. Derivative markets reflect this optimism: Open Interest on ADA has increased by 13% in the past week, and the long/short ratio on Binance is at 2.6, with over 72% of traders currently betting on price increases [1].

Retail and institutional demand is further being stoked by macroeconomic and regulatory developments. A recent executive order signed by U.S. President Donald Trump has opened the door for crypto assets to be included in the $9 trillion 4.01(k) retirement investment market, a development that could provide a major tailwind for ADA. Additionally, the likelihood of four U.S. interest rate cuts before year-end—potentially starting as early as September—is expected to stimulate inflows into risk assets like cryptocurrency [1].

The potential for a spot Cardano ETF approval by October 10 has also contributed to growing investor interest. According to Bloomberg analysts, the chances of approval have climbed to 90%, signaling strong institutional support for ADA [1]. With these catalysts in play, some analysts argue that ADA could go beyond the $1.30 triangle target and climb toward $3, $5, and ultimately $10 [1].

Fundamental developments are also supporting the bullish case. Partnerships such as the one with blockchain startup Midnight are expanding cross-chain adoption, further enhancing the utility of the Cardano ecosystem [1]. This combination of technical strength, macroeconomic tailwinds, and growing institutional and retail interest has led to speculation that ADA may be entering a new bullish phase.

While near-term volatility remains a factor—particularly with key U.S. inflation data due in late August—the overall trend appears to be aligning with a long-term bullish setup for ADA. If the $1.30 level holds, it could serve as a new floor for the asset, particularly if U.S. TradFi integration continues to accelerate [1].

Source: [1]Cardano Price Prediction: Triangle Chart Pattern Points to 1,000% Rally – $10 ADA Coming Next (https://cryptonews.com/news/cardano-price-prediction-triangle-chart-pattern-points-to-1000-rally/)