TL;DR
- ADA breaks past $0.85, flipping resistance into support and setting up a possible run toward $1.60.
- Futures open interest rises to $1.7 billion, indicating strong interest from traders across the board.
- A long-term chart pattern suggests that ADA could repeat past surges and push toward the $2.40 area.
Cardano Breaks Out of Multi-Month Pattern
Cardano (ADA) has recently emerged from a lengthy pennant formation after several months of trading within narrowing price boundaries. This pattern, initiated in late 2024, concluded with a decisive breakout confirmed on the 2-day chart.
Upon breaking out, ADA retested the $0.85 level—a threshold that has transitioned from resistance into short-term support. At the time of writing, ADA is trading at approximately $0.8635, reflecting a 0.35% gain over the last 24 hours and an impressive increase of more than 15% over the past week.
Analyst Jonathan Carter has highlighted potential upside targets for ADA at $1.03, $1.17, $1.33, and ultimately $1.60. These targets align well with previous price actions and historical volume levels on the chart.
#ADA has broken out of the bullish pennant formation on the daily timeframe.
After a retest of the $0.85 level, expect continued upward movement with targets at $1.03, $1.17, $1.33, and $1.60 pic.twitter.com/wIiQJQdaBG
— Jonathan Carter (@JohncyCrypto) July 22, 2025
Meanwhile, the Relative Strength Index (RSI) is trending upwards but remains under the critical threshold of 70, which suggests that there could still be room for further price increases before reaching overbought conditions.
Historical Structure Supports Upside Move
Additional technical analysis indicates a broader ascending channel that has developed since early 2023. Notably, according to Bitcoinsensus, ADA has previously experienced significant price surges from this configuration, with past bounce-offs from the lower channel line leading to 200% and 300% gains.
If the current trend continues, ADA could feasibly target $2.40, mirroring earlier patterns. Analyst Dan Gambardello has also observed that ADA seems poised to break through its long-term resistance and reach higher price levels in this market cycle.
Futures Activity and Market Participation Rise
Recent data from CoinGlass reveals that open interest in ADA futures contracts has surged to $1.7 billion, marking a new peak. This uptick in market activity illustrates a growing engagement from both retail and institutional investors.
Recent legislative changes in the United States have also begun to clarify the regulatory environment for cryptocurrencies following the passage of the Genius and Clarity Acts. This shift is perceived as a positive development that may encourage larger participants to explore investments in ADA and other digital assets.
The insights discussed here pose interesting implications for current and prospective investors in Cardano (ADA). The recent advancements and historical patterns combined suggest a potentially bullish path ahead.
