Analyst Says Be Careful With Cardano as Bull Flag Breakout Could Trigger Major Rally to $1.30

Analyst CobraVanguard identifies a bullish flag on Cardano’s 3-day chart, but traders must wait for a breakout confirmation. Cardano (ADA) maintained a narrow trading range between $0.67 and $0.72 over the past week, reflecting short-term volatility. Although the token recorded a 2.3% gain in the last 24 hours, it dropped slightly by over 1% in the past 7 days. However, behind the tight price action, technical indicators and derivatives market data suggest a critical phase in ADA’s consolidation. Bullish Chart Patterns Signal Potential Upside On TradingView, analyst CobraVanguard identified a bullish continuation pattern on the 3-day ADA/USDT chart. The structure resembles a falling wedge or flag formation. This setup follows a steep rally from early November 2024 to early December 2024, when ADA surged from around $0.30 to a peak above $1.30. This movement formed the “flagpole” of the pattern, which has since transitioned into a downward-sloping channel. The wedge began forming in early January 2025 and continues through May 2025. Prices have oscillated within the upper resistance and lower support trendlines, failing to break either decisively. Resistance held firm at $1.30, $1.10, and $0.90, while support levels at $0.63, $0.60, and $0.56 kept the bears in check. CobraVanguard emphasized the importance of waiting for a breakout above the flag’s upper trendline. If that occurs, ADA may aim for $1.3387, a potential 89.18% rally from its current price of $0.7076. Key Demand and Resistance Zones A second analysis by Arman Shaban, also on TradingView, added context using Smart Money Concepts. His 3-day ADA/USDT chart mapped a full market structure cycle. ADA rose sharply from $0.33 to nearly $1.32 before reversing near a Bearish Order Block. This area, located in the upper grey zone, introduced strong sell pressure that initiated a corrective phase. During the retracement, the price declined to a Demand Zone around $0.50. This zone aligned with a Bullish Order Block. The price was then rebalanced by filling a nearby Fair Value Gap, which provided a key entry point. ADA currently trades around $0.7082, consolidating just above the critical $0.65 support zone. According to Shaban’s observation, upcoming resistance and potential target zones are $0.75, $0.81, $0.93, and $1.05. Growing Long-Side Confidence Beyond price charts, sentiment from the futures market supports the bullish outlook. According to Coinglass data , the ADA OI-Weighted Funding Rate chart reveals consistent positive funding since mid-April. This means long-position holders have been paying shorts, showing that more traders are betting on price increases. Notably, this trend aligns with ADA’s gradual climb from below $0.61 to over $0.70. The synchronized rise in funding rates and price points is due to strong participation from both spot and derivatives markets. Notably, this data supports the bullish outlook presented in recent technical analyses. DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses. Source: https://thecryptobasic.com/2025/05/02/analyst-says-be-careful-with-cardano-as-bull-flag-breakout-could-trigger-major-rally-to-1-30/?utm_source=rss&utm_medium=rss&utm_campaign=analyst-says-be-careful-with-cardano-as-bull-flag-breakout-could-trigger-major-rally-to-1-30