TLDR:

ADA is forming a bullish double-bottom pattern with eyes on a breakout above $0.76.
Cardano’s TVL jumped 50% in one week, now holding $336M in locked DeFi assets.
Analyst sees potential for Cardano to hit $10 or even $40 in bullish wave scenarios.
A crypto-linked payment card boosts ADA’s real-world utility beyond trading.

Cardano (ADA) is gaining ground as market confidence returns to the crypto sector. After a sharp 25% weekly rise, the token now trades near $0.75. 

Market watchers suggest the current surge may only be the start of a larger move. Momentum, chart patterns, and ecosystem growth all point to possible continued gains. However, ADA must clear a key resistance to sustain its upward path.

ADA Price Shows Strong Technical and Market Indicators

According to crypto analyst Tony Afternoon, Cardano is forming a textbook double-bottom pattern, a bullish structure often preceding breakouts. The pattern aligns with Cardano’s latest price action, which saw a breakout past $0.70. 

Afternoon noted that a clean break above $0.76 could open a run toward the $1 level.

Is $ADA really gearing up to hit $1? #Cardano surged 25% this week to $0.74, but the data suggests this could be just the beginning.

Technical Analysis (TA): A classic double bottom pattern is forming, a powerful breakout signal.
Ecosystem Growth: TVL on DeFi Llama has… pic.twitter.com/I6dLfXUpSi

— Tony Afternoon (@primitive_hd) July 16, 2025

Beyond charts, DeFi activity on Cardano is surging. As reported on DeFi Llama, the platform’s total value locked (TVL) jumped by 50% in just seven days, now at $336 million. This signals rising investor confidence and inflows into ADA-linked decentralized finance.

Gert van Lagen, a market analyst, outlined two possible bullish continuation setups on ADA’s monthly chart. In the first scenario, ADA may rise within a wedge structure, targeting $10 in the final wave. This setup implies strong but steady growth, with potential resistance near the top of the pattern.

The second scenario paints a more aggressive outlook. Here, Cardano could be entering the third wave of a larger momentum move, pushing the price as high as $40. 

Van Lagen supports this view with a hidden bullish divergence on the Relative Strength Index (RSI), suggesting strength beneath the surface.

$ADA [1M] – Very strong Hidden Bullish Divergence

Bull Market Continuation Scenarios:

– BLACK: (Leading Diagonal)
Rising wedge to (1) with final leg up to ~$10.
Watch for bearish div at 5.

– BLUE:
Momentum subwave 3 of (3) starting, target ~$40.

Invalidation: <$0.22 pic.twitter.com/4x2fLn5hJp

— Gert van Lagen (@GertvanLagen) July 16, 2025

Cardano Price Levels and Momentum Still in Focus

Despite optimism, the rally has not yet broken critical resistance. ADA must stay above $0.50 to keep bullish sentiment intact. A fall below $0.22 would invalidate both long-term bullish patterns, according to van Lagen’s analysis.

Short-term price action remains favorable, with Cardano now up 22.94% in the past week. Data from CoinGecko shows a 24-hour volume over $1.1 billion, pointing to strong interest.

Cardano price on CoinGecko

The rise in ADA is not just driven by speculation. Cardano recently introduced a crypto-linked payment card, increasing the token’s day-to-day use. This development supports demand beyond trading, strengthening the case for continued growth.

As price, utility, and investor interest align, Cardano may be positioning for another leg higher. However, traders will watch closely for a move past $0.76 as the next major signal.

 

The post Cardano Rally Gains Steam: Analysts Predict $10 to $40 Scenarios for ADA appeared first on Blockonomi.

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Filed under: Bitcoin - @ July 16, 2025 4:25 pm