Key market indicators suggest a potential recovery for the altcoin market. Its dominance has now fallen to an important support level, the achievement of which in the past has often been accompanied by strong upward rallies.
It could be led by several cryptocurrencies, including Cardano (ADA), whose chart patterns indicate a potential breakout.
On the weekly chart, ADA has been in a descending channel since reaching its peak in December 2024. This model is marked by descending resistance and support levels, with a brief breakout at the beginning of this year following a tweet from Donald Trump.
Statistics show that when assets break out of such descending channels, it often leads to increased volatility and potential growth.
If ADA continues to rise, its price could reach previous highs of around $1.10–$1.13, levels last seen in early 2025.
Moreover, Cardano has formed a descending wedge, yet another bullish formation. This model could lead to a breakout to $0.77–$0.78 in the short term.
Indeed, we cannot rule out a drop to $0.65–$0.63 before the rally begins. Despite short-term fluctuations, the long-term outlook for ADA remains positive.
In an even more optimistic scenario, if the altcoin season does begin and institutional purchases start to rise, ADA could surpass the $1.70 mark 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 strong upward trends.