Date: Sat, July 05, 2025 | 12:50 PM GMT
As Q3 kicks off, the cryptocurrency market continues its strong momentum carried over from Q2. Ethereum (ETH) has climbed more than 4% over the past week, currently trading near $2,515. This bullish environment is lifting the overall sentiment, and Cardano (ADA) is showing signs that it could be the next major altcoin to rally.
While ADA has posted modest gains recently, its technical setup is flashing a potentially powerful bullish signal — a setup that has previously led to explosive moves in the past.
Source: Coinmarketcap
Broadening Wedge Pattern in Play
According to crypto analyst Jonathan Carter, Cardano has formed a broadening wedge pattern on the 3-day chart — a formation often seen before major trend reversals. Interestingly, this is the third consecutive bullish setup for ADA over the past year, and each previous pattern has triggered significant rallies.
The pattern is taking shape just above a key long-term support zone between $0.24 and $0.26, where bulls have stepped in multiple times before. ADA has also broken above the descending resistance line of the wedge and is now hovering just above the 50-day moving average (MA), currently around $0.69.
Cardano (ADA) 3d Chart/Credits: @JohncyCrypto (X)
Volume is gradually picking up, and RSI has started to curve upwards from oversold territory — both of which further support the possibility of an upcoming breakout.
What’s Next for ADA?
If ADA maintains its momentum and confirms a clean breakout above the 50-day MA and wedge structure, bulls could push toward the next key resistance levels. Immediate upside targets lie at $0.80, $1.00, and potentially $1.30, which aligns with the previous resistance zone shown on the chart.
That said, traders should keep an eye on the broader market for confirmation. A rejection near the MA 50 or a sudden market reversal could delay the upside scenario.
