Cardano (ADA) Price Prediction: Strong Rally Could Be on the Horizon

Cardano (ADA) has faced a price decline recently, dropping to $0.64, a 6.2% decrease in the past day. Despite this, many analysts believe that ADA price prediction suggests a strong rally could be on the horizon.

Recently, Cardano (ADA) has faced a decline, dropping to $0.64, a 6.2% decrease in the past day. However, despite this setback, many analysts believe that a strong rally could be on the horizon, as classic technical patterns are forming, and large investors are engaging in increased accumulation.

Cardano’s Present Market Standing

The price of Cardano has been closely linked to trends in the broader crypto market. The recent fall in ADA is attributed to a correction in the general market, partly driven by investor concerns about tariffs announced by President Donald Trump. This has resulted in downward momentum for Bitcoin and other altcoins, including ADA.

Despite this short-term dip, ADA’s market cap remains substantial at $23.3 billion. Analysts predict that the narrative could shift bullish soon, especially as the altcoin finds support around key Fibonacci retracement levels. Moreover, if accumulation continues at this pace, we could see the Cardano price beginning an upward trend sooner than anticipated.

Technical Analysis Points Toward a Breakout

One of the strongest pieces of evidence for an ADA rebound comes from technical analysis. As depicted in Chart 1, ADA appears to be forming an ABCDE triangle pattern, which is typically associated with a strong breakout. This pattern, characterized by five waves within a tightening range, usually culminates in an explosive price move.

Chart 1 – ADA/USD triangle pattern, published on Binance, March 31, 2025.

Furthermore, ADA is trading within a symmetrical triangle pattern, another classic consolidation structure. If the Cardano price breaks above the upper trend line, there will be minimal resistance to prevent it from reaching $1.5 and beyond. Experts note that institutional whales have been steadily increasing their accumulation since the beginning of March, lending further credence to a bullish outlook.

Another positive signal is evident in the Relative Strength Index (RSI), which is approaching oversold levels. Typically, when the RSI reaches oversold territory, we observe an intensification of buying pressure, which could ultimately lead to a reversal in price.

Market Trends and Future Prospects for ADA

The ADA price has exhibited periods of stagnation before undertaking substantial rallies. Some analysts suggest comparing the current market behavior of ADA to the events of August–September 2024, where the token demonstrated a robust trend after some periods of stability.

Additionally, there is growing optimism within the cryptocurrency market regarding Cardano’s prospects. Statistics compiled by CoinGlass reveal that owners of ADA have been diligently pulling their tokens out of exchanges, thereby reducing the pressure to sell. This trend of accumulation is becoming increasingly pronounced and bodes well for a swift price increase.

Chart 2 – Provided by RonZee, published on TradingView, March 31, 2025.

However, the most crucial factor in determining the direction of ADA is its correlation with Bitcoin. With a correlation coefficient of 0.79, the price action of ADA is largely dependent on Bitcoin’s performance. Its Relative Strength Index, having fallen to $3.9, appears poised to reach oversold levels shortly, which may encourage bulls to enter and drive the price upward. But the moment Bitcoin stabilizes, we might see the narrative shift bullish for ADA.