Cardano (ADA) Price Prediction: Will It Break Out Above $0.70 and Reverse the Downward Channel?

Cardano (ADA) has been trading inside a downward channel since December 2024. The price has been making lower highs and lower lows

Cardano (ADA) has been trading inside a downward channel since December 2024. The price has been making lower highs and lower lows, falling from around $1.32 to a bottom close to $0.50.

At the time of this post, ADA is priced at about $0.69, just below a key resistance level at $0.70. This $0.70 level is important because it lines up with the neckline of a possible inverted head and shoulders pattern.

That’s a common chart setup that can signal a trend reversal. If ADA pushes above that point, it could be the start of a strong move up. But if it gets rejected again, we could see the price head back down.

ADA has also been following the general moves of Bitcoin. From early April until the time of writing, Bitcoin jumped from about $76,000 to $94,000. That move sparked rallies across many altcoins, including ADA, which went from around $0.70 to $0.77.

As Bitcoin started to cool off and trade between $92,000 and $95,000, ADA slowed down too. If Bitcoin picks up again and heads toward $100,000 or even its all-time high of $109,000, Cardano could benefit.

But that will depend on a few big factors lining up in May.

What the Indicators Are Telling Us About ADA Price

To understand where the ADA price might go next, we looked at a few key indicators on the daily chart. The signals are mixed and a little confusing.

The Relative Strength Index (RSI) is around 46, which is considered neutral. This means ADA isn’t too high or too low, so there’s room for the price to move in either direction.

The Stochastic Oscillator is a bit more positive, showing a buy signal at 60.67. That suggests that short-term momentum could be picking up.

On the other hand, the MACD is slightly negative at -0.008, which is usually read as a bearish sign. The Ultimate Oscillator is also showing weakness, with a reading of 41.5, which leans bearish too.

We’re also seeing some support from the Rate of Change (ROC) and Bull Bear Power indicators, both of which are showing buy signals. This means that there’s still some strength in ADA’s recent price moves.

But when it comes to the moving averages, the outlook is more negative. Most of the long-term averages, like the 50-day, 100-day, and 200-day, are showing strong sell signals.

That means that ADA is still trading below many of its key trend lines, which can be a bearish sign unless something changes soon.

We Asked ChatGPT to Predict Cardano Price in May

So what could happen next? We asked ChatGPT to give us a Cardano (ADA) price prediction for May, and here are the three possible scenarios it suggested.

Pessimistic: ADA Drops Back to $0.52

In this worst-case scenario, ADA fails to break above $0.70 and the bullish pattern breaks down. If Bitcoin also slows down or drops below $90,000, ADA could fall with it.

The price might slip below $0.65, revisit $0.60, and maybe even test the bottom of the channel again at around $0.52 to $0.50. That would be a clear sign that sellers are still in control.

Realistic: ADA Moves Between $0.62 and $0.73

If Bitcoin keeps trading in its current range between $92,000 and $95,000, then ADA might do something similar. The price could stay stuck between support at $0.62 and resistance at $0.73.

In this case, the inverted head and shoulders pattern might remain visible but not confirmed. Traders would probably wait on the sidelines for a clearer signal.

Optimistic: ADA Breaks Out Toward $0.90

This is the best-case scenario. If Bitcoin starts climbing again and breaks above $100,000, it could lift altcoins like ADA along with it. If ADA breaks above the $0.70 neckline, the price could rally toward $0.77 or even $0.90.

That kind of breakout might trigger more buying, especially if Bitcoin pushes toward its all-time high. In that case, we’d likely see a shift in sentiment and growing confidence in Cardano.