Main points:
ADA technical chart formations indicate a price target near $1.25.
Cardano’s open interest has surged to a historic high of $1.95 billion, reflecting significant speculative interest.
Cardano (ADA) is displaying various technical and on-chain signals indicating a potential rally to $1.25 in the upcoming days or weeks. Several charts support the case for an imminent breakout.
ADA price symmetrical triangle targets $1.25
Data from Cointelegraph Markets Pro and TradingView reveals that Cardano’s price is enclosed within a symmetrical triangle in the daily time frame, as illustrated in the chart below.
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The price must close above the triangle’s upper trendline at $0.925 to maintain an upward momentum, with a projected target of $1.25.
This movement would equate to a total increase of 38% from the current price level.
The relative strength index has risen from 40 to 55 since early August, indicating a consistent buildup of bullish momentum.
Cardano’s cup-and-handle aims for $1.20
ADA’s price is also attempting to break out from a cup-and-handle pattern on the four-hour chart, as seen 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 ascend towards the measured target of the prevailing chart pattern at $1.20, marking a 32% increase from the current price.
As reported by Cointelegraph, ADA requires a decisive break above $0.94 to build momentum for a rally towards $1.25.
Cardano’s open interest hits new highs
Cardano’s open interest (OI) in futures markets has reached a record high of $1.95 billion on Sunday, indicating robust speculative interest in the derivatives sector.
This significant demand implies that more traders are positioning themselves for ADA’s upward movement, potentially fueled by ETF speculation.
The chart above illustrates that Cardano’s OI has surged 22% in the past 12 days, indicating a growing demand for leveraged ADA positions.
A rise in OI frequently precedes significant price movements, as evidenced between June and mid-August when ADA’s price nearly doubled following a 150% increase in OI.
A spot Cardano ETF seems more plausible, with approval odds increasing to 90% on Friday from 59% on August 6, according to Polymarket.
As reported by Cointelegraph, numerous technical and on-chain indicators present a compelling case for an ADA price surge towards $2 or beyond, once the $1 psychological resistance level is decisively breached.
This article does not offer investment advice or recommendations. Every investment and trading action carries risks, and readers should conduct their own research before making a decision.
