The technical data of the ADA price shows a breakout from its prevailing bullish flag pattern, according to analyst Clifton Fx.
The ADA/USD pair has consolidated within a broad flag range since December, consistently absorbing selling pressure. This phase typically culminates in a decisive breakout above the upper limit of the flag.
That breakout seems to be underway, with ADA facing resistance at $1, a level that has suppressed the price since December 2024.
"A bullish breakout of the bullish flag has been confirmed on the 3-day time frame," Clifton said in a post on X on Thursday, adding:
"We now expect a massive bullish rally of 100% to 150% in the coming weeks."
A three-day candle close above and a new test of the $1 level (as new support) would confirm the bullish breakout with a technical target for the bullish flag at $1.80.
A similar pattern was observed in lower time frames with a bullish flag on the four-hour chart and a price target for ADA of $1.27.
TradingView data shows that ADA is trading above a symmetrical triangle on the weekly time frame.
The price must close the weekly candle above the psychological level of $1 to continue the upward trajectory, with a target of $2.12. Such a move would raise total gains to 126% from the current level.
A spot ETF for Cardano also seems more likely, with approval odds increasing to 81% on Tuesday from 59% on August 6, according to Polymarket.
At the same time, the total value locked (TVL) in Cardano's DeFi protocols is increasing.
Cardano's TVL has risen by 56% to USD 423.6 million, its highest level since March, up from USD 271 million on July 1, according to DefiLlama.