Cardano (ADA) Turns Bullish After Breakout: How High Can Price Go?

The price of Cardano (ADA) has been steadily increasing, gaining around 40% over the last five weeks. This upward momentum might just be the beginning.

The price of Cardano (ADA) has been steadily recovering, adding around 40% to its price over the last five weeks. But while this upward momentum might seem surprising to some, there are signs that it might just be beginning.

One chart analysis shared by Rose Premium Signals on X highlights how ADA could be setting up for a significant rally. Their technical update focuses on the breakout from a falling wedge pattern, often seen as a bullish reversal signal.

"ADA broke out of a measured falling wedge on Wednesday," the analysis begins.

This breakout occurred after several months of consolidation and downtrend, finally releasing the token from the upper boundary of the wedge. The falling wedge itself is a bearish chart pattern, typically seen when prices are in a downtrend and the highs and lows are converging. However, once price breaks above the wedge, it can signal a reversal of the trend.

In the case of ADA, the wedge had been forming since early March, with multiple touches at different time frames confirming the pattern. Once ADA broke above the upper boundary of the wedge in May, the sentiment began shifting more bullish. This chart also highlights a key support zone that comes into play just after the wedge breakout.

ADA is currently consolidating around this support zone, which is crucial for maintaining the bullish bias. This zone lies just below the $0.77 area, a level that had previously been resistance but now appears to be holding bids.

"As long as this zone is holding support, we can expect to see further upside towards the first target at $0.9508," the analysis adds.

Price Targets: $0.95, $1.02, and $1.13

According to the chart, there are three clear short to mid-term price targets: $0.9508, $1.0295, and $1.1316. These levels represent possible resistance points where price might stall or consolidate before continuing higher. The final target of $1.13 would represent a significant jump from current levels, indicating the potential for ADA to rally further if bullish momentum remains strong.

This forecast aligns closely with what Rose Premium Signals shared on their profile, noting bullish potential above the falling wedge breakout. Their own price targets include $0.84, $1.00, and $1.18, which are very close to those shown in the main chart.

Cardano is quickly becoming one of the altcoins to watch closely as they could be setting up for outperformance in the second half of 2023.

If ADA can maintain support above the breakout level and attract enough buying pressure, the next few weeks could bring sharp upside movement. The ADA price has clearly flipped a critical structure, and if momentum holds, Cardano might be heading toward its most bullish phase in months.