Cardano (ADA) has been making waves in the cryptocurrency market, with its price increasing by 37% in August. Although the price has returned to its previous levels, several bullish signals indicate that a breakout to $1 is inevitable. According to analysts at Clifton FX, the ADA price technicals show a breakout from its prevailing bull flag pattern. The ADA/USD pair has been consolidating in a large flag area since December and has steadily absorbed sales pressure, which often ends with a decisive breakout above the upper limit of the flag.
A similar pattern was observed in a lower time frame, with a bull flag on the four-hour chart and an ADA price target of $1.27. Additionally, data from CoinTelegraph Markets Pro and TradingView show ADA trading above a symmetrical triangle in the weekly time frame, with a price target of $2.12. The relative strength index (RSI) has increased from 41 to 59 in mid-June, indicating steadily increasing bullish dynamics in higher time frames.
The futures volume of ADA has reached a five-month high of $7 billion, according to Glassnode data, reflecting strong institutional and retail interest, increased liquidity, and market trust. The sudden jump in futures volume is reminiscent of March 2025, when ADA prices were last above $1. Furthermore, the approval odds for a Spot Cardano ETF have risen from 59% to 81%, according to Polymarket, and the total value locked (TVL) in Cardano DeFi protocols has increased by 56% to $423.6 million, according to Defillama.
Historically, similar growth in TVL has been accompanied by massive ADA price rallies. During the period after the election, an increase in TVL accompanied a 300% rally in ADA price between November 5, 2024, and December 7, 2024. With several bullish signals indicating a breakout to $1, it is essential to keep an eye on the ADA price. For more information, visit https://cointelegraph.com/news/cardano-massive-rally-one-dollar-breaks-how-high-can-ada-price-go?utm_source=rss_feed&utm_medium=rss_tag_altcoin&utm_campaign=rss_partner_inbound
