Key takeaways:
ADA technical chart patterns indicate a target price of approximately $1.25.
Cardano’s open interest has surged to an all-time high of $1.95 billion, reflecting significant speculative interest.
Cardano (ADA) is presenting various technical and on-chain signals that suggest a potential rally to $1.25 in the coming days or weeks. Here are several charts supporting the case for an imminent breakout.
ADA price symmetrical triangle targets $1.25
Data from Cointelegraph Markets Pro and TradingView show that Cardano’s price is navigating within a symmetrical triangle on the daily time frame, as illustrated in the chart below.
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For the price to maintain an upward trend, it must close above the upper trendline of the triangle at $0.925, with a projected target of $1.25.
This move would result in total gains of 38% from the current level.
The relative strength index has risen from 40 to 55 since early August, indicating a consistent buildup in bullish momentum.
Cardano’s cup-and-handle targets $1.20
ADA’s price is also attempting a breakout from a cup-and-handle formation on the four-hour chart, as depicted below. Bulls are now trying to push the price above the pattern’s neckline at $0.96 to confirm a bullish breakout.
If successful, Cardano could ascend toward the measured target of this chart pattern at $1.20, representing a 32% increase from the current price.
As reported by Cointelegraph, ADA needs a clear break above $0.94 to gather momentum for a climb towards $1.25.
Cardano’s open interest reaches new heights
Cardano’s open interest (OI) in futures markets has reached a historic high of $1.95 billion, signaling strong speculative interest within the derivatives market.
This heightened demand indicates that more traders are wagering on ADA’s upward path, potentially boosted by ETF speculation.
The chart above reveals that Cardano’s OI has risen by 22% over the past 12 days, suggesting increased demand for leveraged ADA positions.
A surge in OI often precedes significant price fluctuations, as observed between June and mid-August when ADA’s price nearly doubled after a 150% increase in OI.
The likelihood of a spot Cardano ETF is also increasing, with approval chances rising to 90% on Friday from 59% on August 6, according to Polymarket.
As Cointelegraph noted, various technical and on-chain indicators strongly support the case for an ADA price rally towards $2 or even higher, following a decisive break above the $1 psychological resistance level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
