- Cardano (ADA) is on the verge of a potential breakout, with a bullish pennant formation suggesting a price surge to $1.40 in the short term and possibly reclaiming its all-time high of $3.10.
- Rising network activity, growing investor interest, and strong technical indicators further bolster ADA’s prospects for significant gains in 2025.
Cardano is capturing the attention of traders and investors alike as its price consolidates near $1.00, signaling the potential for a major breakout. The cryptocurrency, which has seen a 28% price increase since the start of 2025, is bolstered by strong technical indicators, rising network activity, and increased investor interest.
Bullish Pennant Formation Suggests a Breakout
Technical analysis highlights a bullish pennant formation on ADA’s price chart, as noted by Ali Charts, a prominent cryptocurrency analyst. This pattern, which typically signals the continuation of an uptrend, is characterized by a sharp price increase followed by consolidation within a triangular shape.
The resistance level of the pennant stands at $1.11, while support lies at $1.10. A breakout above the upper trendline could see Cardano targeting $1.40 in the short term, with the potential to breach its previous all-time high (ATH) of $3.10. Ali Charts further suggested that if bullish momentum strengthens, the price could accelerate quickly toward higher levels.
Technical Indicators Back the Bullish Case
Supporting the bullish outlook, the Relative Strength Index (RSI) currently stands at 67, indicating strong buying activity, though nearing overbought territory. Additionally, the Moving Average Convergence Divergence (MACD) remains in bullish territory, pointing to sustained upward pressure.
These technical signals align with earlier analyses, including a prediction by a leading news media, which suggested a similar breakout scenario based on Elliott Wave theory.
Rising Network Activity Fuels Optimism
Beyond technical patterns, Cardano’s growing network activity is a key driver of its bullish momentum. Data from DeFiLlama reveals that the Total Value Locked (TVL) on the Cardano blockchain has surged to $595 million, marking a 33% increase since the start of the year.
Transaction volumes have also climbed to $10.64 million, reflecting heightened on-chain activity. Furthermore, over 10,000 new wallets have been added to the network since December 19, bringing the total to 4.38 million. This influx of new participants suggests a strong and growing market sentiment.
Key Resistance Levels and Long-Term Targets
Despite its bullish momentum, Cardano faces critical resistance levels that must be breached to sustain its uptrend. Immediate resistance lies at $1.20, with the 1.618 Fibonacci extension pointing to a target of $1.34. A breakout above these levels could pave the way for even more ambitious price targets, such as $7 or $10, as projected by analysts like Dan Gambardello.
Gambardello, founder of Crypto Capital Venture, believes ADA could achieve a tenfold increase during this market cycle, fueled by its strong fundamentals, ongoing developments like the Cardano Midnight protocol, and partnerships with other blockchains.
Cardano is at a pivotal moment, with technical and fundamental factors aligning to support a potential historic surge. While the immediate target is $1.40, breaking past $1.20 will be crucial for further gains. If bullish momentum continues, Cardano could not only reclaim its ATH but also push toward new heights, making it a top asset to watch in 2025.
