Cardano: A 575% Surge if it Holds for a Year? Major Symmetrical Triangle Hints at an Explosive Scenario

▲ Cardano (ADA)

An analysis suggests that Cardano (ADA) is maintaining a compressed trend within its long-term price pattern, opening up the possibility of a significant future surge.

The Crypto Basic reported on May 5 (local time), citing market analyst BFB's analysis, that Cardano is forming a convergence structure near the bottom of a long-term upward support trend line. This trend line has served as a key support base in past market cycles and was mentioned as the starting point for the rebound that led to the 2021 bull market after a sideways period in 2020.

Cardano is analyzed to be maintaining this multi-year support line despite overall price weakness. The Crypto Basic stated that while ADA has fallen 24% this year and remains more than 80% below its previous bull cycle high, selling pressure may be gradually being absorbed in the long-term support zone.

On the weekly chart, Cardano is forming a large symmetrical triangle between an upward support line and a downward resistance line. The downward resistance line has limited several rebounds since December 2024, and the upward support line has acted as a demand zone for many years. The repeated maintenance of these support and resistance boundaries suggests that market participants are closely watching this price structure.

BFB believes that if Cardano continues to hold above the current support zone, the long-term structure will be maintained. He explained that if it then moves to and breaks through the upper resistance line, the previously absent upward momentum could be confirmed. He emphasized that a holding period of at least one year is required for this structure to fully unfold.

The Crypto Basic stated that if the downward resistance line is clearly broken, Cardano could extend to around $1.70 in the long term. This represents a potential increase of approximately 575% from the current level. However, this scenario is only possible with sustained momentum and favorable market conditions, and until a breakout is confirmed, Cardano is expected to remain in a convergence phase.

Some signs of momentum recovery have also appeared in the derivatives and spot markets. In the last 24 hours, ADA open interest increased by 4.6%, and futures trading volume surged by 35%. Spot trading volume also rose by 56%, and the 24-hour spot flow was interpreted as a signal that users are accumulating ADA rather than leaving it on exchanges.

Cardano's future trajectory depends on maintaining the long-term support line and breaking through the downward resistance line. If the support line holds and trading volume recovers, the long-term bullish scenario could gain traction, but it is difficult to consider it out of the compression phase until it breaks above the upper resistance.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses incurred based on it. The content should be interpreted for informational purposes only.*