ADA on the supported trend line: bullish flag confirms the chance for a rebound

Cardano (ADA) is at a critical point in its technical roadmap. Currently trading near $0.27, the currency remains above an important upward trendline that has repeatedly supported buyers since 2023. On the weekly chart, a clear bullish flag pattern appears, indicating a potential move back toward significantly higher levels. This combination of long-term support and technical formation suggests an interesting opportunity for the market.

Rising trendline as fundamental support

The weekly Cardano chart reveals a history of consistent support along the rising trendline. This diagonal, tested multiple times in mid-2023, late 2023, and early 2024, remains active and functional. Each touch on this line triggered buyer reactions rather than leading to a breakdown in the downtrend.

Current ADA rebound follows the same pattern as previous rallies. The fact that the trendline has held despite sharp declines this year indicates strong demand at this level. This is a fundamental signal: ADA’s long-term upward structure remains intact. For investors, it means the market has not entered a broader bearish trend — instead, it is consolidating at known support.

Fibonacci and intermediate target zones

Analyzing Fibonacci retracement levels from previous upward moves, ADA currently oscillates between the 0.382 and 0.236 levels. These levels have historically served as reversal points when markets seek balance after large moves. ADA’s current position suggests the market is trying to stabilize in this area.

If momentum persists, the next intermediate target is the $0.7285 zone. This level is a key resistance within the retracement structure. Breaking above it opens the way higher, toward the upper Fibonacci target at $0.9525. This provides a clear roadmap for those monitoring the price evolution in the medium term. Many indicators suggest these levels will be tested sequentially if buying strength remains.

Bullish flag pattern and 303% potential

At the top of the analysis, a bullish flag pattern appears — one of the most reliable continuation formations. The pattern forms when the price makes a sharp rally (the “mast”), then consolidates in a narrow channel with lower highs and lows (the “flag”). In ADA’s case, the rally toward the spring 2025 highs created the mast, and several months of consolidation formed the flag.

Crucially: if ADA confirms a breakout above the upper boundary of this channel on weekly close, the pattern indicates a movement scale of about 303% from current levels. This places the main target around $1.71 — a level that coincides with a significant horizontal resistance seen on the chart. The growth range would be spectacular but not unprecedented in ADA’s history.

Volume behavior supports this scenario. Trading activity has noticeably decreased during consolidation — a classic sign before a strong breakout. RSI momentum, although currently low (around 34), typically recedes during compression phases and only revives after a breakout. This is not contradictory to bullish expectations but rather confirms that the market is waiting for a signal to exit consolidation.

What will drive the next move?

ADA is trading below the 50-week EMA at $0.665, but this indicator remains within the flag range and does not negate the formation itself. The final trigger depends on a weekly close above the upper trendline of the channel. A clear breakout would reassure investors that the continuation pattern is confirmed and establish $1.71 as the next major test.

The cards are now laid out. The long-term rising trendline supports ADA’s ability to rebound, Fibonacci points to intermediate paths, and the bullish flag pattern sketches a potential 303% growth map. The key now is to observe whether buyers will be strong enough to break the flag’s upper boundary and initiate the next phase of growth.