Cardano (ADA) Price Prediction: Breakout From Ascending Triangle Pattern Could Send ADA to $0.85

Cardano (ADA) is trading around $0.74 as of Thursday, March 27, 2025, after recovering more than 4% so far this week.

Cardano (ADA) is trading at around $0.74 on Thursday, March 27, after recovering more than 4% so far this week. The eighth-largest cryptocurrency has been consolidating in a tight range between $0.69 and $0.75 for several weeks, but recent on-chain data and technical patterns suggest a possible upward movement.

According to Coinglass data, the long-to-short ratio for Cardano derivatives reached 1.15, its highest level in over a month. A ratio above one indicates that more traders are placing bullish bets, anticipating an increase in ADA’s price in the near future.

Moreover, stablecoin market capitalization on Cardano reached a new all-time high of $30.77 million on Monday. Data from DefiLlama confirms this growth, highlighting the rising utility and adoption of Decentralized Finance (DeFi) on the Cardano network.

Technical analysis of the 4-hour chart shows that Cardano faced rejection at its 50-day Exponential Moving Average of $0.77 on Wednesday, dropping 2.16%. This level also coincides with the weekly resistance level, making the $0.77 mark a key factor for bulls to overcome.

Examining the daily chart, the Relative Strength Index (RSI) stands at 49 and is moving toward the neutral level of 50. This signifies a decline in bearish momentum, although the RSI needs to rise above 50 for the bullish trend to gain strength.

The Moving Average Convergence Divergence (MACD) indicator displayed a bullish crossover on Tuesday. This technical signal, typically used to identify buy opportunities, suggests the beginning of an upward trend.

Analysis of the 4-hour chart reveals the formation of an ascending triangle pattern. This pattern shows Cardano price movement between a horizontal resistance at $0.775 and a rising trendline, a technical factor that often precedes a breakout.

The Bollinger Bands on the 12-hour timeframe appear to be compressing. This compression usually signals an upcoming period of increased volatility, which could lead to a strong price movement in either direction.

Despite the overall consolidation, exchange data shows an outflow of $13.75 million worth of ADA tokens in the past 24 hours. According to Coinglass, this indicates that whales and long-term holders may be accumulating the token rather than selling.

Such outflows from exchanges during weak market sentiment can reduce selling pressure. Decreased supply on exchanges could potentially trigger an upward price movement if demand increases.

Trading volume for Cardano dropped by 18% in the past 24 hours. This decrease suggests that traders and investors remain cautious and are hesitant to engage heavily during the consolidation phase.

If Cardano manages to break above the $0.77 resistance level and close a daily candle above it, analysts suggest it could rally by 13-15%. This movement would put the next target at around $0.85, with potential to reach $0.90 if momentum continues.

Some more bullish projections see Cardano potentially reaching the $1 mark if the breakout from the ascending triangle pattern occurs with high volume. This would represent a gain of over 35% from current levels.

However, traders should remain vigilant as Santiment’s Age Consumed metric shows a spike. This indicates that dormant ADA wallets are becoming active, which could increase selling pressure if these long-term holders decide to take profits.

The current market uncertainty may be influenced by broader economic factors. On Wednesday, Cardano price dropped more than 2% following news of a 25% tariff by U.S. President Donald Trump on all foreign-made cars, showing that crypto prices remain sensitive to macroeconomic developments.