The Cardano price was one of the major beneficiaries of the positive momentum injected into the market following US President Donald Trump’s announcement of a strategic crypto reserve. On Sunday, March 2, the altcoin surged by almost 60% in a couple of hours after the disclosure.
While the Cardano price has maintained a good percentage of the early-week gains, it has experienced a mild pullback over the past week. Interestingly, the current price setup suggests that the cryptocurrency may soon resume its upward trajectory and travel to new cycle highs.
What’s Next For ADA Price In This Cycle?
In a March 7 video posted on the X platform, popular crypto analyst Ali Martinez revealed how ADA could enter a fresh bull rally to a new high in the current cycle. According to the crypto pundit, the ninth-largest cryptocurrency could still make a play for the $2 mark.
The rationale behind this bullish prediction is the formation of a right-angled, descending broadening wedge on the daily timeframe of the ADA price chart. A broadening formation is a technical analysis pattern typically marked by two diverging trendlines; an ascending upper trendline (connecting a series of higher highs) and a descending lower trendline (connecting lower lows).
Source: @ali_charts/X
However, as shown in the chart above, the broadening wedge pattern in the ADA daily chart specifically has a horizontal upper trendline (right-angled) and a falling lower trendline. In any case, this chart pattern is usually associated with a period of increasing price volatility (or significant price action).
While the broadening patterns are mostly bearish chart formations, they sometimes just signal rising volatility without a clear indication of the next price direction. Nonetheless, the current formation, which has persisted since December 2024, appears to be bullish for the Cardano price.
Martinez said the altcoin seems ready for a significant price move to the upside. However, the analyst noted that the ADA price would need to overcome the major resistance level (around $1.14) at the horizontal trendline before a bullish breakout can be confirmed.
If Cardano successfully breaches and closes above this resistance level, its price could more than double over the next few weeks. Martinez set the price target for ADA at $2, representing an over 140% surge from the current price point.
Cardano Price At A Glance
After surpassing $1.1 on the back of the strategic crypto reserve news earlier, the price of ADA has returned below $1. As of this writing, the Cardano price stands at around $0.82, reflecting an over 4% decline in the past 24 hours.
The price of ADA on the daily timeframe | Source: ADAUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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