Cardano aims for $1 as bullish W pattern appears

Cardano (ADA) is currently attracting attention from traders due to technical indicators indicating a potential uptrend. The appearance of a classic W-pattern on the charts implies that ADA may be on the brink of a breakout, with the $1 price target firmly in sight. Traders are closely monitoring the progress of Cardano as buying pressure increases, and critical resistance levels come into play.

One trader recently pointed out the formation of a bullish W pattern on ADA’s chart, suggesting that the coin is near a significant resistance area. The analysis indicates that Cardano could surpass $0.90 in the short term, and if it manages to break through $0.94, it may swiftly reach the psychological milestone of $1. This pattern typically signals a reversal of a downward trend and indicates a resurgence in buying activity.

Analyzing the 4-hour ADA/USDT chart provides several positive signs for bullish investors. Technical indicators suggest momentum is building, and the W-pattern formation hints at a possible reversal. Immediate resistance levels are identified at $0.90, with a stronger barrier seen at $0.94. A clear breakthrough above these levels could pave the way for ADA to reach $1. The current trading scenario shows ADA above its short-term moving average, reflecting favorable trend dynamics. Moreover, increasing buying pressure, rising trading volumes, and a recovering RSI further support the idea of growing bullish sentiment.

Cardano’s recent strength can be attributed to various factors. The overall crypto market has been on a path to recovery, primarily led by Bitcoin’s resilience and upward trajectory. Additionally, Cardano’s ecosystem is expanding, especially within the realms of DeFi and staking, attracting more users and developers. The psychological importance of the $1 price level has historically drawn attention from both retail investors and institutional players seeking clear entry points.

If bullish momentum remains intact and the $0.94 level is successfully transformed into support, ADA stands a good chance of reclaiming the $1 milestone in the short term. However, if resistance proves formidable, a pullback towards the $0.82–$0.84 range might be a possibility. Traders should keep a close eye on how the price behaves around the $0.94 zone, as it will likely determine whether the breakout occurs or if consolidation persists.