Cardano Looks Ready for Takeoff as Analyst Targets $5 Level

• Cardano trades above MA200 and EMA233, signaling strong bullish momentum with a possible breakout toward the $5 target.
• An analyst sees ADAs recent dip as a shakeout before a 2025 bull run and new all-time highs.

Cardano (ADA) appears to be poised for a major comeback after the crypto market correction that rocked the market in recent hours.

While many digital assets are still recovering, analyst Master Ananda sees strong signs that Cardano could be one of the next stars of the 2025 bull cycle, potentially even heading towards the $5 level.

According to his technical analysis, ADA is now trading above the 200-day moving average (MA200) and 233-day moving average (EMA233) on the weekly timeframe, two key levels that often mark the boundary between long-term uptrends and downtrends.

“A weekly close above these two levels would confirm continued upside. Anything bearish is now a thing of the past,” Master Ananda wrote in his report.

He believes the recent sharp correction was simply a “shakeout,” a moment when the market weeds out weak traders before a major upward movement begins.

Source: Master Ananda on TradingView

Cardano Shows Familiar Patterns Ahead of a Potential Major Rally

In Ananda‘s view, Cardano’s current price structure exhibits a pattern similar to that seen before the strong surge in the previous year.

The August 2024 support level is now functioning as a double-bottom pattern, while the October 2023 low is also back in action. Historically, whenever ADA touches that area, a long-term bullish wave always follows.

However, what makes this situation different is the market conditions, which are considered more mature and stable.

“When the weekly price is above the 200-day moving average (MA200) and 233-day moving average (EMA233), the market is usually very bullish. An uptrend can form quickly,” he said.

He also added that although the uptrend is not yet fully visible, this is an interesting moment because the next bullish cycle could potentially begin at any time.

Furthermore, the latest market data also shows a quite interesting combination. ADAs price is currently around $0.6421, up 2.45%in the last 4 hours, although it is still down 1.06%in 24 hours and 23.68%in the last 7 days.

Trading activity reached $435.16 million with a market capitalization of $23.01 billion. Meanwhile, open interest fell by around 10.73% to $701.14 million, indicating a clearing of leveraged positions following extreme volatility.

Growing Trust and Expanding Reach Signal ADAs Next Phase

Meanwhile, on-chain indicators and ecosystem development also reinforce the positive narrative for Cardano. CNF reported that in the past month, wrapped ADA on Coinbases Base network surged from 1.7 million to 9.56 million units.

This increase is considered to reflect growing confidence in the Cardano network among institutional and retail investors, especially amid the shift in funds from Bitcoin and XRP.

Furthermore, Brave‘s move to add Cardano to its wallet has also provided a new impetus for adoption. Now, more than 100 million Brave users can access ADA and Cardano’s native assets directly without the need for additional extensions.

They can even swap tokens and participate in network governance. This integration makes Cardano one of the most accessible blockchains among major platforms.

Master Ananda concluded his analysis with a relatively optimistic outlook. He called this consolidation phase merely “the calm before the bullish storm.”

If the scenario plays out according to the technical patterns hes monitoring, Cardano has the potential to experience a major bullish phase in the coming weeks and months.