Cardano Primed for $4 Surge as Cup and Handle Formation Signals Major Breakout

Cardano (ADA) is flashing a textbook bullish signal—and traders are betting it could catapult the token past $4.

The third-generation blockchain's native asset has carved out a classic 'cup and handle' pattern on weekly charts, a technical formation that often precedes explosive upside moves. Market technicians note the setup completed with a decisive breakout above the $2.80 resistance level last week.

Volume trends tell the real story. Accumulation spikes during the pattern's base-building phase suggest institutional players are positioning for what could be ADA's first major leg up since its 2021 all-time high. Retail FOMO hasn't even kicked in yet—typical for this stage of the cycle.

Of course, no crypto rally would be complete without Wall Street skeptics crying 'bubble.' One hedge fund manager quipped, 'I'll believe it when I see the Lambo dealerships accepting ADA.' Meanwhile, smart money keeps stacking sats.

Cup and Handle Pattern Hints at Major Rally

The cup and handle pattern identified in Cardano’s long-term chart is a well-known technical formation that typically signals the continuation of a bullish trend. Based on TradingView data, the “cup” part of the pattern began in late 2021 when ADA fell from its high NEAR $3.10, bottoming around $0.24 in December 2022. This support level held firm throughout 2023 and into early 2024, forming a rounded bottom.

The “handle” phase followed between March and July 2025, showing a period of sideways consolidation between $0.75 and $0.92. This handle represents a short-term resistance before the final breakout phase, which many traders see as a crucial signal of renewed momentum.

ADA Nears Critical Resistance at $0.92

At the time of writing, Cardano is trading at $0.7845, reflecting an 11.5% drop over the past week. Despite the recent decline, ADA remains close to the $0.92 resistance level that defines the top of the cup. A breakout above this level could validate the bullish pattern and signal the beginning of a significant upward movement.

Analysts typically project breakout targets by adding the depth of the cup to the breakout level. In this case, the cup’s depth is approximately $0.67, suggesting a conservative price target of around $1.59. However, Crypto Smith envisions a more aggressive target above $4.00, suggesting a broader market rally or a macro-level cycle influencing the forecast.

Whale Accumulation Hints at Imminent Breakout

One of the key indicators supporting the bullish case for cardano is the extended accumulation phase between 2022 and 2024. During this time, ADA traded within a narrow range of $0.25 to $0.50, signaling strong interest from large investors or “whales” quietly building their positions.

Crypto Smith notes that this accumulation phase has now ended, with whales reportedly done accumulating. This often precedes a strong price breakout, as institutional and long-term investors prepare for future gains. This accumulation zone adds further credibility to the cup and handle setup, suggesting that ADA could be gearing up for a major move.

Broader Market Momentum Adds Support

Cardano’s bullish setup aligns with the broader crypto market’s recovery. July 2025 has seen renewed bullish sentiment, with top cryptocurrencies like Bitcoin recently hitting a fresh all-time high of $123,000 before pulling back slightly to $118,166. As major assets regain strength, altcoins like Cardano often follow with lagging but significant rallies.

Analysts Predict ADA Recovery and Upside

Several analysts and influencers are turning optimistic about ADA’s near-term future. Michael Pizzino, a well-known market commentator, recently noted Cardano has broken out of a descending trendline that stretched from October 2024 to August 2025. He pointed to an inverse head-and-shoulders formation with a neckline at $0.506, now acting as strong support.

Pizzino believes if ADA reclaims the $0.95 level, it could head toward $1.00, with potential to test $1.66 if bullish momentum continues. Similarly, influencers like Josh label ADA undervalued at its current price and project a 5x to 10x return from current levels. Another trader, Crypto King, predicts a breakout on the 1-day chart, targeting the $1.4–$1.6 range.

Long-Term Forecasts Eye Double-Digit Prices

Looking further ahead, some long-term forecasts for Cardano are highly ambitious. Analysts such as Mintern and Tyler Burke foresee ADA hitting between $11 and $12 by 2026. These projections are based on fundamental growth, expanding ecosystem use cases, and increased adoption.

Even more boldly, Cardano founder Charles Hoskinson recently stated that ADA could deliver a 1,000x return, vastly outperforming Bitcoin. In a recent interview, he criticized ideas of converting ADA’s treasury into Bitcoin, suggesting it WOULD cap potential returns. A 1,000x increase from current prices would place ADA at $800 with a $27.5 trillion market cap—surpassing Bitcoin’s projected $1 million valuation.

Final Thoughts

While short-term price action remains cautious, Cardano’s technical setup and long-term accumulation signal strong bullish potential. The cup and handle pattern, coupled with whale interest and analyst support, suggests that ADA could be preparing for a significant rally. Whether it reaches $1.60 or aims higher toward $4.00 or beyond, the coming weeks may prove crucial for Cardano’s future.