Cardano (ADA) Price Eyes $4 as Bull Flag and Cup Handle Pattern Align - Blockonomi

TLDR:

• Cardano forms Cup and Handle pattern under resistance around $0.95.
• EMA 50, 100, and 200 align as strong support near $0.70–$0.75.
• Fibonacci levels project targets up to $4.00 if breakout holds.
• ADA up 20% weekly but still trading below major psychological levels.

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Cardano is holding the line. While many tokens push off mid-level bounces, ADA still grinds at historical lows. 

The price sits under major resistance, yet the chart tells a different story. Traders tracking the structure say ADA is ready to break out. Technicals now show a pattern few coins can match in clarity.

Cardano Bullish Pattern Forms Beneath Key Level

Analyst Alex Clay posted a detailed look at ADA’s chart structure, pointing out several bullish signals stacked together.

He said Cardano was trading inside a “Cup and Handle” formation, a setup known for launching major upside moves. The pattern began in mid-2022 and has held strong through multiple cycles.

What followed is a tightening bull flag, the “handle” of the formation, playing out between March and July. Prices printed a sequence of higher lows since December 2022, marking steady reaccumulation. Despite macro headwinds, the pattern stayed intact.

Those who laugh at #ADA will be punished❗️

Strongest TA structure in the market, given the fact $ADA is still trading at the dip🔥

Let's consider🧐

🟢Overall Higher Lows structure
🟢C&H formation with a Bull Flag
🟢Support by confluence of EMA 50 + EMA 100 + EMA 200

Look… pic.twitter.com/3F6EdX2mid

— Alex Clay (@cryptclay) July 22, 2025

Clay also noted a rare confluence of moving averages. The EMA 50, 100, and 200 all sit just under the current price, between $0.70 and $0.75. This support range is holding firm, catching dips and pushing the price upward.

Converging EMAs often suggest momentum is shifting. The current compression under resistance, Clay added, could mean ADA is building up for a sharp leg higher. That resistance level, around $0.95, is now in focus.

Fibonacci Levels Confirm Hidden Strength

Another key detail comes from the Fibonacci retracement zones. ADA’s bull flag is forming just under the 0.618 Fib level, around $1.00. This area is known to spark breakouts during strong setups.

If bulls clear that resistance, Clay outlined the next targets: $1.76, then $2.44 and $3.10. A psychological level at $4.00 caps the extension, based on Fib projection levels. These numbers reflect prior major pivot zones that traders may revisit.

Despite its 20% gain over the past week, Cardano remains under $0.90. According to CoinGecko, it was last trading at $0.8779 after a 24-hour pullback of 4.5%. Volume topped $2.2 billion, reflecting strong interest at current levels.

ADA continues to trade near the low end of its historical range, even with one of the cleanest bullish charts in the market. While the crowd hesitates, structure-focused traders seem ready to send it.