TLDR
- Cardano is trading within a symmetrical triangle pattern with key support at $0.85-$0.88 and resistance at $0.95-$0.98
- The critical $1.15 resistance level has repeatedly capped ADA’s upward momentum
- Over 15 billion ADA has remained untouched for more than a year, reducing active sell pressure
- Cardano has officially crossed 5.5 million wallets, showing steady user base expansion
- Bitcoin dominance approaching key inflection point could allow liquidity to rotate into altcoins like ADA
Cardano (ADA) is currently trading in a consolidation pattern that has caught the attention of crypto investors. After weeks of sideways movement, ADA is trading within a tightening range where buyers and sellers are battling for control.
The price action shows ADA compressing inside a symmetrical triangle, with support near $0.85-$0.88 and resistance around $0.95-$0.98.
This pattern highlights growing compression between buyers and sellers, with volume steadily declining. Such setups often precede sharp directional moves.
At the time of writing, ADA is trading at $0.9533 with a 24-hour trading volume of $2.14 billion and a market capitalization of $33.96 billion.
ADA’s price has increased by 3.46% over the last 24 hours and is up 19.6% over the past week.
If ADA loses support, bears would likely aim for the $0.80 zone, which aligns with past liquidity pockets.
On the other hand, ADA’s structure still shows a series of higher lows supported by the 50-period moving average, keeping bullish hopes alive.
A confirmed breakout above resistance would project toward the $1.10 target, reflecting the measured move from the triangle’s height.
Key Resistance at $1.15
Following the symmetrical triangle setup, Cardano now faces a bigger challenge on the higher timeframe: the $1.15 resistance zone.
This level has acted as a rejection point multiple times over the past months, creating a ceiling that has kept ADA capped despite attempts to rally higher.
Each rejection around this area has been met with swift downside moves, underscoring how important the $1.15 level is for market participants.
Even if ADA breaks out cleanly from the triangle formation, this horizontal resistance remains the true barrier to watch before any sustained upside momentum can unfold.
From a technical perspective, bulls will want to see a strong close above $1.15 on heightened volume to confirm strength beyond the breakout.
Such a move would invalidate prior rejection wicks and potentially open the path towards the $1.30 to $1.35 zone.
On-Chain Growth Supports Bullish Case
Beyond chart structures, on-chain data is adding weight to ADA’s current setup. Over 15 billion ADA has remained untouched for more than a year, effectively reducing active sell pressure.
This level of long-term holding suggests conviction among investors and mirrors accumulation patterns that preceded ADA’s major rallies in prior cycles.
At the same time, Google search interest for “altcoin” has surged to levels not seen since 2021, hinting at a potential wave of renewed retail participation.
Fresh on-chain data highlights that Cardano has officially crossed 5.5 million wallets, a milestone that underscores its steady user base expansion and deepening adoption.
The increasing number of long-term holders, coupled with the sharp rise in wallet creation, suggests that more participants are willing to commit capital for extended periods.
From a technical standpoint, the breakout from a multi-month bull flag aligns with this supply squeeze narrative. Analysts are projecting a potential move that could place upside targets between $1.60 and $1.75 if momentum expands.
Bitcoin dominance is approaching a key inflection point with a possible rejection at the upper channel boundary. Historically, whenever BTC dominance stalls or reverses at these levels, liquidity tends to rotate back into altcoins.
For ADA, this backdrop is particularly favorable given its technical setup inside the symmetrical triangle. If dominance weakens further, ADA could see a rally aimed towards higher levels.
On-chain data shows ADA trading activity slowed down with a 12.42% decline in volume, reaching $5.20 billion, but open interest increased 5.28% to $1.86 billion.
This signifies that traders are positioning for future volatility despite declining active trading.
The open interest weighted funding rate is 0.0108%, revealing that traders are positioning themselves for future price action.
Cardano finds itself at a pivotal point where both technical and on-chain signals are aligning for its next move.
