Cardano (ADA) Is Drawing Attention as Traders Prepare for a Possible Move Toward $1

Cardano (ADA) is drawing attention as traders prepare for a possible move toward $1. In a May 25 X post, Crypto analyst WHALES_CRYPTOzz points out an ascending triangle forming on the ADA’s 4-hour chart.

Traders are focusing on Cardano (ADA) as it approaches a key resistance level that could propel the coin toward the $1 mark. In a May 25 X post, crypto analyst WHALES_CRYPTOzz highlighted an ascending triangle pattern forming on ADA’s 4-hour chart.

This pattern showcases a series of higher lows, with the horizontal resistance zone between $0.74 and $0.76 being tested and holding across several candles. As the triangle edges toward its apex, traders can anticipate a breakout or a move lower.

ADA is currently trading near $0.73, just below the horizontal resistance zone. Throughout the pattern’s formation, trading volume has remained relatively flat.

The 50-period moving average (MA 50) is also visible and has recently flattened out, indicating a balanced short-term trend during this phase of compression.

If ADA manages to break above the current resistance barrier, traders can set their sights on upside targets around $0.81, with further resistance levels to watch at $088 and $0.996.

However, on the downside, a failure to breakout and close above the triangle could see Cardano slipping below the ascending trendline, which is providing support around $0.69. A move lower could revisit the support zone between $0.64 and $0.59.

Chart: WHALES_CRYPTOzz

Altcoin Rally Could Lift Cardano

Another analyst, Dan Gambardello, put ADA’s current trend in perspective by comparing it to prior cycles.

Still no breakout yet on lower timeframe charts.

But on the 4 hour chart we can see that we're quickly approaching the apex of the ascending triangle.

Past behavior has seen a breakout occur after one touch on the lower timeframe charts. But this time we've seen several phases of rise and consolidation.

This "coiling" effect could unleash strong gains if momentum builds.

Also, according to Dan Gambardello, we could see a broader altcoin move if Ethereum breaks out of a long-term trend line, which would in turn impact other markets.

That possibility could benefit ADA, which has already spent time building a technical base. A combination of strength in the broader market and a coordinated move among altcoins could push ADA above key resistance.

Cardano Development and Demand Stay Strong

Messari’s Q1 2025 report showed that Cardano faced several setbacks. ADA’s price performance led to a decrease in its circulating market cap.

However, despite the market pressure, governance developments at Chain Level progressed smoothly, highlighted by the Plomin Hard Fork, marking a major technical milestone for the network.

Price volatility had a negative impact on overall sentiment. However, on the positive side, staking levels remained mostly stable, showing only a 1% drop to 21.6 billion ADA.

Stablecoin markets on Cardano expanded by 30% to reach $30.1 million, driven by increased demand for fiat-backed assets such as USDM, IUSD, and USDA.

Cardano’s treasury balance rose 5% to 1.7 billion ADA, though its dollar value dropped 19% to $1.1 billion.

Together with the strong support from staking and the structural improvements, the recent data points to Cardano’s long-term resilience despite the ongoing financial strain.