Cardano’s price movement has drawn significant attention from traders after successfully reclaiming the crucial $0.78 support level, backed by strong trading volume. The cryptocurrency now approaches a pivotal test at the $0.88 resistance zone that could determine its next major move.
ADA managed to bounce back from the $0.74-$0.77 range following several weeks of consolidation. This price level had previously served as resistance but has now transformed into reliable support for the current upward momentum.
Recent trading activity demonstrates increasing volume alongside consistent daily closes above the $0.77 mark. Technical analyst Tom Tucker observed that ADA’s recovery above this level has restored market structure after the pullback experienced in July.
Tucker’s technical assessment pointed to a rebound from $0.72, which corresponds with the neckline of an inverse head-and-shoulders formation. This chart pattern suggests potential movement toward $0.88 initially, followed by a possible advance to $1.19.
Volume surges in spot trading markets provide confirmation of the bullish momentum. ADA has established a series of higher lows since early July, creating an ascending triangle pattern on the four-hour timeframe.
For the rally to continue, bulls must maintain price structure above $0.88 to reach the next resistance target around $1.19. Analyst Dan Gambardello drew comparisons between the current technical setup and similar conditions that preceded major rallies in 2021.
Long-Term Technical Pattern Emerges
Technical analyst CryptoSmith0x has spotted a substantial cup-and-handle formation developing on Cardano’s two-week chart. This pattern has been taking shape since the 2022 peak, with the handle portion forming within the $0.50-$0.60 range.
$ADA monstrous cup and handle!
whales are done accumulating #Cardano
Breakout target: $0.92 → $4.00+ 🎯 pic.twitter.com/kb4rghM3G4
— Smith (@CryptoSmith0x) July 29, 2025
The pattern’s neckline is positioned near $0.92, which serves as the critical breakout threshold. A decisive move above this level could potentially spark a rally toward $4.00, representing roughly a 400% increase from current levels.
Analysis from Minswap reveals a breakout from a long-term descending channel that occurred in mid-July. The altcoin successfully broke through trendline resistance and subsequently retested that level as new support.
This technical structure remains intact provided the price maintains levels above $0.76. The successful retest could establish the foundation for another upward swing targeting the $1.19 area.
Founder Highlights Platform Advantages
Charles Hoskinson recently advocated for Cardano’s technological merits in comparison to Bitcoin during a discussion with Jason Yanowitz. The platform’s founder positioned Cardano as a more advanced blockchain focused on scalability and governance capabilities.
Hoskinson stressed Cardano’s technical superiority and flexibility when measured against Bitcoin’s infrastructure. He noted the network’s expanding footprint across Asian and African regions as evidence of its growing adoption.
The founder explained that Cardano’s development approach allows for more rapid implementation of innovations while maintaining security standards. Ongoing network improvements continue as fundamental strengths may influence future price action.
Market observers appear to align with Hoskinson’s assessment, with analyst WhaleFUD stating that “Cardano has never been fundamentally stronger than now.”
CryptoPulse’s technical analysis shows price action stalling beneath the $0.88-$0.91 resistance area. This zone aligns with the neckline of the broader bullish chart formation.
A daily closing price above $0.88 could redirect momentum toward $1.06 and potentially trigger additional upside movement. This level represents a decisive point for ADA’s immediate direction.
Data from TapTools indicates Cardano has maintained its ranking among leading cryptocurrencies by market capitalization since its launch. This sustained market presence lends credibility to current bullish technical patterns.
The Cardano DeFi ecosystem recently crossed the $100 million threshold in total value locked during the recent price surge. On-chain activity has increased alongside growing speculation about potential ETF approval.
Exchange wallet balances have stabilized while on-chain wallet creation continues to accelerate, indicating that major holder accumulation periods may be concluding.
Market Implications
The technical breakout patterns and strong volume support suggest ADA could experience significant upward momentum if key resistance levels are breached. Growing DeFi activity and ecosystem development may provide additional fundamental support for sustained price appreciation.
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