Cardano’s Charts Point to Upcoming Bullish Phase

Cardano (ADA) traders are closely following the monthly chart as it reveals patterns reminiscent of those seen before the major bull run in 2020. The current chart depicts higher highs and higher lows, indicating a strengthening long-term momentum for ADA.

The current chart formation closely resembles the setup seen in 2020, just before ADA experienced a significant price surge from below $0.10 to over $3. Currently priced around $0.82, ADA is consolidating above the mid-$0.70s range.

A cup-shaped pattern has emerged on the chart, with the price stabilizing above previous support levels. The market seems to be at a similar turning point to the one that preceded its last explosive cycle.

The bullish case for ADA is supported by several key observations. ADA has consistently defended the $0.50–$0.60 support range, preventing significant pullbacks. Each correction has established a stronger support level, indicating accumulation. The $1.00 mark remains a crucial resistance level to monitor, as a breakout above this level could trigger a momentum push towards $1.50 and beyond. The monthly Relative Strength Index (RSI) is showing an upward trend, reflecting improving strength, and trading volume suggests gradual accumulation.

Recent developments in the Cardano ecosystem provide further support for the bullish outlook. Hydra scaling upgrades are enhancing the efficiency of the network, while DeFi expansion and increasing staking activity are boosting on-chain utility. Cardano’s proof-of-stake model is also attracting interest from institutional investors seeking sustainable blockchain infrastructure.

The long-term chart indicates that Cardano may be on the cusp of the next phase of its market cycle. If ADA continues to maintain higher lows and breaks above the $1.00 threshold, it could enter a strong bullish phase similar to its previous market cycle. For investors, this setup may signal the beginning of another significant opportunity, although caution is advised when navigating market volatility.