Cardano’s Falling Wedge Pattern Signals Potential Bullish Reversal
Cardano (ADA) might be on the verge of a bullish turnaround. The daily chart shows a falling wedge pattern, frequently enough a sign of trend reversals.
As of now, ADA is priced at $0.6404, with a market cap of $23.12 billion. Over the past month, the token has lost 15% and is 44% below its year-to-date peak. The recent decline follows a surge in March when it hit its 2025 high on March 3. This surge was largely due to its inclusion in U.S. President Donald Trump’s proposed crypto strategic reserve.
Investor optimism about the potential approval of Grayscale’s spot Cardano ETF by the SEC also fueled the rally. However, the SEC’s decision delay until July 15, 2025, and a decline in network activity have cooled sentiment. ADA is now down 15% over the past 30 days and 44% below its year-to-date highs.
Despite the recent downturn, ADA’s technical structure hints at a possible recovery. The falling wedge pattern, a bullish reversal indicator, is forming as price action narrows toward a key support level. ADA is approaching the $0.51 zone, a level previously defended by bulls in April. A continued drop toward this level could precede a trend reversal if buyers regain control.The token has slipped below its 20-day EMA, and the MACD remains negative. The RSI stands at 41, signaling bearish conditions but not yet oversold.A decisive breakout above the wedge and key resistance at $0.68 could signal a reversal and drive prices toward $0.86, a 34% increase from current prices.
Further upside catalysts include the anticipated Glacier airdrop and Hoskinson’s proposal to convert $100 million worth of ADA into Bitcoin and stablecoins. This treasury strategy aims to generate non-inflationary revenue and stimulate growth within the Cardano DeFi ecosystem.
