Cardano (ADA) Set for 40% Surge as Double-Bottom Pattern Confirms Rally
Cardano (ADA) is on the move, driven by technical and market specific catalysts. After dipping to $0.50 earlier this year ADA...
Quick overview
- Cardano (ADA) has rallied 25% in July, reaching a high of $0.6320, driven by technical indicators and market catalysts.
- A double bottom formation on the daily chart suggests a potential breakout, with a target price of $1.2153 if the neckline at $0.8630 is breached.
- The meme coin Snek is contributing to the rally, increasing by 11% and boosting interest in other ecosystem tokens.
- Key metrics indicate strong bullish momentum for ADA, with futures open interest nearing $1 billion and increased DEX volume.
Cardano (ADA) is on the move, driven by technical and market specific catalysts. After dipping to $0.50 earlier this year ADA has rallied 25% in July and hit a high of $0.6320—the highest since mid June. As the broader market stabilizes and Snek (the Cardano meme coin) is up double digits.
A key driver of the rally is the double bottom formation on the daily chart. This setup visible at $0.5086 in April and June often precedes a breakout. The neckline of this formation is at $0.8630 a level that’s 40% above current price.
Other technicals support this trend:
- RSI has gone from bearish 29 to bullish 56 the highest since May 23.
- MACD lines have crossed bullish and are about to break above the zero line.
If ADA breaks the neckline at $0.8630 it could go to the target of the pattern near $1.2153—a 93% move from current price.
Meme Coin Snek Fuels Ecosystem Optimism
One of the less discussed yet impactful drivers of the ADA rally is Snek—the top meme coin in the Cardano network. With a market cap of over $163 million Snek is up 11% in a day (July 10) and is bringing back the hype.
Snek’s rally is creating a ripple effect and attention is being drawn to other ecosystem tokens:
- World Mobile Token (WMT)
- Liqwid Finance (LQ)
- Iagon (IAG)
Snek’s rally is also bringing life to Cardano’s DEX. According to DeFi Llama Cardano’s DEX volume is $3.1 million in 24 hours—the highest since July 3.
Key Metrics Show Cardano’s Bullish Momentum
Beyond meme driven enthusiasm and technicals broader ecosystem developments are adding to the bullish case.
- Futures open interest in ADA is $983 million and nearing the $1 billion mark—the highest since March.
- The Glacier airdrop which rewards ADA holders with NIGHT tokens is about to bring more attention and liquidity.
ADA has been steady but strong metrics, DEX volume and community momentum suggests more to come. Break above $0.8630 and $1.20 in the next few weeks.
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