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.