The altcoin market seems poised for some interesting weeks as key market indicators suggest the possibility of a major move. The dominance of altcoins has dropped to an important support level, an area where strong altcoin rallies have often begun in the past.
While the next step for Bitcoin remains uncertain, several altcoins are starting to show strength. Among them is Cardano (ADA), which continues to make headlines. New charts now hint that ADA may be preparing for a breakout if the altcoin season begins this summer.
Cardano's chart shows two key bullish breakout patterns.
On the weekly chart, Cardano has been in a descending channel since its peak in December 2024. The analyst explained that this pattern is marked by descending resistance and support levels, with a brief breakout earlier this year following a tweet from Donald Trump. Historically, when assets break out of such descending channels, it often leads to increased volatility and potential growth.
Source: InvestingBroz
If ADA continues to rise, the price could reach previous highs around $1.10–$1.13 — levels last seen in early 2025.
However, Cardano has also recently formed a descending wedge, another bullish formation. This pattern could lead to a breakout to $0.77–$0.78 in the short term.
Source: InvestingBroz
The analyst also warned of a possible drop to $0.65–$0.63 before a rally begins. Despite the short-term fluctuations, the long-term outlook for ADA remains positive.
Could Cardano become parabolic?
In an even more optimistic scenario, if the market enters a strong altcoin season and institutional buying begins to rise, ADA could surpass $1.70 and head towards $2.20, even reaching $2.40. This higher range coincides with another Fibonacci extension level known as the golden pocket extension, a favored target zone for traders in powerful uptrends.
Source: InvestingBroz
The analyst stated that while $1.70 may act as the first significant resistance, a realistic level would be $2.20–$2.40 if altcoins start to outperform Bitcoin.