Cardano (ADA) has recorded an impressive increase of up to 37% in August. Although a correction followed, successive technical signals indicate that the breakout above the $1 mark seems to be only a matter of time.
Cardano's 'bull flag' pattern is targeting the $1.80 mark.
According to analyst Clifton Fx, the current technical signals indicate that Cardano (ADA) is preparing to break out above the 'bull flag' pattern – a structure that often signals strong upward momentum.
Since December 2024, the ADA/USD pair has been accumulating within the broad range of this pattern, continuously absorbing selling pressure. Typically, such a price compression phase will end with a clear breakout to the upside.
Currently, the breakout signal seems to be occurring as ADA approaches the key resistance area at $1 – a level that has repeatedly halted the upward momentum over the past 8 months.
"The breakout above the bull flag pattern has been confirmed on the 3-day frame," Clifton noted in a post on X on Thursday. He forecasts: "In the coming weeks, ADA could very well record gains of 100% to 150%."
If ADA closes the 3-day candle above the $1 mark and then successfully tests this area as a new support, the market will receive a strong confirmation signal, opening up a growth target according to the flag pattern at $1.80.
Notably, on a smaller time frame, a second bull flag pattern has also formed on the 4-hour chart, with a short-term target around $1.27 – indicating that ADA's bullish momentum is spreading across multiple levels.
The symmetrical triangle pattern is targeting the $2 mark.
According to data from TradingView, ADA is currently trading above the symmetrical triangle pattern on the weekly frame – a signal indicating that the upward trend is gradually being solidified.
To maintain the upward momentum, the price needs to close the weekly candle above the psychological level of $1. If successful, ADA could embark on a journey towards the target of $2.12, corresponding to a growth of 126% compared to the current level.
Notably, the relative strength index (RSI) also supports this positive scenario as it has risen from 41 in mid-June to 59, reflecting increasingly strong buying pressure on the long-term frame.
The volume of ADA futures contracts has peaked at 5 months.
Positive signals from the derivatives market continue to bolster confidence for the bulls. Data from Glassnode shows that the trading volume of ADA futures contracts has exploded, reaching $7 billion across all exchanges – the highest level in 5 months.
Previously, since the beginning of April, this figure fluctuated only between $1 – $4 billion. The unexpected breakout indicates a strong influx of capital from both institutions and individual investors, thereby increasing liquidity and enhancing market confidence. Notably, the current volume has returned to levels seen in March 2025 – the most recent period ADA maintained above the $1 threshold.
In parallel, expectations for a spot ETF for Cardano are becoming clearer. According to Polymarket, the probability of approval has surged to 81% on August 13, up from 59% just a week earlier.
Not only limited to derivatives, the DeFi ecosystem on Cardano has also seen strong capital inflow. Data from DefiLlama shows that the total value locked (TVL) has increased by 56%, from $271 million on July 1 to $423.6 million – the highest level since March.
In the past, similar growth in TVL has often signaled a price explosion for ADA. Notably, during the post-election period (11/5 – 12/7/2024), Cardano's TVL skyrocketed by 271%, accompanied by an increase of over 300% for ADA.
