Key takeaways:
ADA technical chart setups indicate a price target around $1.25.
Cardano’s open interest has surged to a record $1.95 billion, reflecting substantial speculative interest.
Cardano (ADA) is displaying several technical and on-chain signals, suggesting a potential rally to $1.25 in the upcoming days or weeks. Here are various charts supporting the case for a near-term breakout.
ADA price symmetrical triangle targets $1.25
Data from Cointelegraph Markets Pro and TradingView reveals that Cardano’s price is trading within a symmetrical triangle on the daily time frame, as depicted in the chart below.
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The price must close above the upper trendline of the triangle at $0.925 to maintain the upward trend, with a target of $1.25.
This potential movement would yield total gains of 38% from the current position.
The relative strength index has risen from 40 to 55 since early August, indicating a steady increase in bullish momentum.
Cardano’s cup-and-handle aims for $1.20
ADA’s price is also attempting a breakout from a cup-and-handle pattern on the four-hour chart, as illustrated below. Bulls will now strive to push the price above the neckline of the pattern at $0.96, confirming a bullish breakout.
If successful, Cardano could rise toward the measured target of the existing chart pattern at $1.20, reflecting a 32% increase from the current price.
As noted by Cointelegraph, ADA requires a decisive breakout above $0.94 to gain momentum towards $1.25.
Cardano’s open interest hits new highs
Cardano’s open interest (OI) in futures markets reached an all-time high of $1.95 billion on Sunday, indicating robust speculative interest in the derivatives market.
This high demand implies that more traders are betting on ADA’s upward movement, potentially spurred by ETF speculation.
The above chart reveals that Cardano’s OI has increased by 22% in the last 12 days, suggesting a rising demand for leveraged ADA positions.
A rise in OI frequently precedes significant price movements, as demonstrated from June to mid-August, when ADA’s price nearly doubled following a 150% increase in OI.
A spot Cardano ETF also appears increasingly likely, with approval odds climbing to 90% on Friday, up from 59% on Aug. 6, according to Polymarket.
As reported by Cointelegraph, several technicals and on-chain indicators strongly suggest a price rally for ADA towards $2 or even higher, once the $1 psychological barrier is decisively breached.
This article does not constitute investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research when making decisions.
