Cardano's Potential Rally: Technical Indicators Point to $1.25 Target

According to Cointelegraph, Cardano (ADA) is currently exhibiting several technical and on-chain signals that suggest a potential rally to $1.25 in the near future. The cryptocurrency's price is trading within a symmetrical triangle on the daily chart, with a crucial resistance level at $0.925. A successful breakout above this level could propel ADA to a target of $1.25, marking a 38% increase from its current price. The relative strength index has shown a steady increase from 40 to 55 since early August, indicating growing bullish momentum. Cardano is also forming a cup-and-handle pattern on the four-hour chart, with a neckline resistance at $0.96. A breakout above this level could confirm a bullish trend, potentially driving the price to $1.20, which would represent a 32% gain. The cryptocurrency's open interest in futures markets has reached a record high of $1.95 billion, reflecting strong speculative interest. This surge in open interest suggests that traders are increasingly betting on ADA's upward movement, possibly fueled by speculation around a potential spot Cardano ETF. The open interest has increased by 22% over the past 12 days, indicating heightened demand for leveraged positions. Historically, a rise in open interest has preceded significant price movements, as observed between June and mid-August when ADA's price nearly doubled following a 150% increase in open interest. The likelihood of a spot Cardano ETF approval has also risen significantly, with odds increasing to 90% from 59% earlier in August, according to Polymarket. These factors, combined with multiple technical and on-chain indicators, suggest a strong case for ADA's price rallying toward $2 or higher, provided it can decisively break the $1 psychological resistance level. This article does not offer investment advice, and readers are encouraged to conduct their own research before making any investment decisions.