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ToggleCardano (ADA) has increased by 75% from June 22 to July 18, marking the potential end of a prolonged price decline with a dip near $0.50 in June. In the past 24 hours, ADA continued to surge strongly by nearly 9%, reaching a peak of $0.89 – its highest level in 20 weeks.
ADA's Bollinger Bands are Signaling a Potential Price Explosion
ADA is accumulating enough momentum to target its All-Time-High, if volatility signals occur similarly to previous cycles. According to the Bollinger Bands (BB) indicator, the current price action of ADA/USD is creating favorable conditions for a strong surge. In the recent increase, ADA/USD's weekly candle has touched the upper band of BB – a signal typically seen as the beginning of a price volatility increase in the past.
History shows that ADA breaking through the upper Bollinger band often opens up powerful price surges. Notably, breakouts above the upper band in 2021, 2022, and 2024 led to impressive increases of 1,500%, 117%, and 300% respectively. Currently, the technical chart shows the Bollinger Bands beginning to tighten – a sign of accumulation and preparation for a major movement. ADA's recent touch of the upper band further reinforces expectations that a similar price increase scenario might be forming at this moment.
Cardano Price Emits Multiple Buy Signals
Despite significant increases in recent weeks, ADA's price remains about 4 times away from its historical peak of $3.10 (set in 2021). However, across multiple timeframes, ADA is sending clear price increase signals, indicating that the current recovery is gradually attracting more market momentum.
ADA has broken the "bullish flag" pattern on the weekly chart, surpassing the upper limit of the pattern and simultaneously transforming the 50-day (SMA 50) and 200-day (SMA 200) simple moving averages into support zones (as illustrated in the chart below). According to the flag pattern target measurement, ADA's price could reach $2.70, corresponding to an increase of approximately 216% from current levels. Additionally, the "Golden Cross" signal – occurring when SMA 50 crosses above SMA 200 in the previous week – further reinforces ADA's continued upward trend prospects.
The MACD indicator used to measure trend strength has generated a price increase crossover signal when the ADA/USD pair confirmed the bullish flag pattern on the weekly chart. After a prolonged weakening period from early 2025, MACD is now beginning to form positive histogram bars again. Simultaneously, the RSI on the weekly timeframe shows ADA still has significant room to increase before reaching the overbought zone – similar to strong surge cycles in 2018, 2021, and December 2024.
Even though the daily RSI has reached 80 – a threshold typically considered overbought – according to an anonymous analyst Deezy, history shows that ADA can still potentially increase by an additional 130% to reach the $1.80 mark.
This article does not contain investment advice or recommendations. All investments and trading actions involve risks, and readers should conduct their own research when making decisions.
