Cardano, 575% if it holds for just one year?...Surge Scenario Activated Amidst Large Symmetrical Triangle

▲ Cardano (ADA)

An analysis suggests that Cardano (ADA) is continuing its compression within a long-term price pattern, opening up the possibility of a significant future rally.

The Crypto Basic reported on May 5 (local time), citing an analysis by market analyst BFB, that Cardano is forming a converging structure near the bottom of a long-term upward support trendline. This trendline has served as a key support base in past market cycles and was mentioned as the starting point for the rebound that led to the 2021 bull market after a sideways period in 2020.

Cardano is analyzed to be maintaining this multi-year support line despite overall price weakness. The Crypto Basic stated that while ADA has fallen 24% this year and remains more than 80% below its previous bull cycle high, selling pressure may be gradually absorbed in the long-term support zone.

On the weekly chart, Cardano is forming a large symmetrical triangle between an ascending support line and a descending resistance line. The descending resistance line has limited several bounces since December 2024, while the ascending support line has acted as a multi-year demand zone. The repeated maintenance of these support and resistance boundaries suggests that market participants are closely watching this price structure.

BFB believes that if Cardano continues to hold above the current support zone, the long-term structure will be maintained. He explained that if it then moves to and breaks above the upper resistance line, the previously absent upward momentum could be confirmed. He emphasized that a holding period of at least one year is required for this structure to fully unfold.

The Crypto Basic reported that a clear breakthrough of the descending resistance line could see Cardano extend to around $1.70 in the long term. This implies a potential increase of approximately 575% from the current level. However, this scenario is only possible with sustained momentum and a favorable market environment, and until a breakthrough is confirmed, Cardano is expected to remain in a convergence phase.

Signs of momentum recovery have also appeared in both the derivatives and spot markets. In the past 24 hours, ADA open interest increased by 4.6%, and futures trading volume surged by 35%. Spot trading volume also rose by 56%, and the 24-hour spot flow was interpreted as a signal that users are accumulating ADA rather than leaving it on exchanges.

Cardano's future trajectory depends on maintaining the long-term support line and breaking through the descending resistance line. If the support line holds and trading volume recovers, the long-term bullish scenario could gain strength, but it is difficult to say that it has exited the compression phase until it overcomes the upper resistance.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*