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Key Takeaways
- ADA has formed a bullish double-bottom with a 40% upside target at $0.8630.
- Snek meme coin’s rally is drawing attention back to the Cardano ecosystem.
- Rising DeFi volumes and open interest signal growing investor interest and momentum.
Cardano (ADA) is showing renewed strength, rallying over 25% from its July lows as the broader crypto market recovers. With strong technical signals, surging on-chain volume, and ecosystem support from meme coin Snek, ADA appears poised for a major breakout.
Bullish Double-Bottom Signals 40% ADA Upside
ADA’s daily chart is flashing bullish signals, particularly the formation of a double-bottom pattern near $0.5086—levels touched in both April and June. This classic technical setup suggests a strong reversal may be underway.
The pattern’s neckline sits at $0.8630, marking ADA’s May high and representing a potential 40% surge from current levels around $0.62. A break above this neckline would likely open the door to $1.20, the full target from the double-bottom formation—nearly 93% higher than today’s price.
Adding to the bullish case, ADA’s RSI has climbed to 56, moving above the neutral 50 level, signaling growing momentum. The MACD indicator has also flashed a bullish crossover, with lines nearing the zero point—further confirming strength in the current trend.
Snek Meme Coin Reignites Cardano Ecosystem
Another driver of ADA’s price jump is the ongoing rally in Snek (SNEK)—the largest meme coin on Cardano, with a market cap above $163 million. Snek surged 11% on July 10, bringing attention back to the Cardano ecosystem and driving user engagement.
As interest in Snek grows, investors are also exploring other Cardano-based tokens like World Mobile Token, Liqwid Finance, and Iagon. This renewed on-chain activity is slowly debunking the narrative of Cardano being a “ghost chain.”
DeFi Volume and Futures Interest Hit New Highs
According to DeFi Llama, Cardano’s decentralized exchange (DEX) volume surged to $3.1 million in 24 hours—the highest since July 3. Meanwhile, open interest in ADA futures rose to $983 million, nearing the $1 billion mark for the first time since March, highlighting increasing investor confidence.
Adding to the buzz is the upcoming Glacier airdrop, which will reward ADA holders with NIGHT tokens, further incentivizing accumulation and holding.
Cardano’s technicals, meme coin momentum, and rising DeFi activity suggest ADA could soon retest May’s high of $0.8630. A clean break above that would target the $1.20 level, in line with the double-bottom pattern’s projection. While a dip below $0.50 would invalidate the setup, the current indicators point strongly toward upside continuation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Cardano Price Analysis: ADA Up 17%, But $0.68 Resistance Could Stall Rally
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
