Cardano (ADA) Price: Bulls Seize Control After Shattering Bullish Falling Wedge

ADA bulls just flipped the script—breaking out of a textbook falling wedge pattern that's got traders buzzing.

The Technical Breakout

That wedge had been tightening for weeks, squeezing volatility until ADA finally burst through resistance. No fancy indicators needed—just pure price action confirming what the charts hinted at all along.

Market Momentum Shifts

Suddenly, everyone's repositioning. Shorts got caught off guard while long positions pile in, riding the momentum wave. Volume spikes tell the real story—this isn't some dead-cat bounce.

Where From Here?

Next resistance levels loom overhead, but for now, bulls own the narrative. They've cleared the first major hurdle and aren't looking back. Typical crypto drama—where yesterday's 'broken project' becomes today's 'revolutionary play' faster than a VC can say 'tokenomics.'

Keep watching those key levels. This move either validates the pattern or becomes another entry in crypto's hall of famous fakeouts.

TLDR

• Cardano is trading above $0.84 after rebounding from key support levels last week
• Positive funding rates and record-high stablecoin market cap of $40.37 million support bullish sentiment
• Technical analysis confirms a bullish falling wedge pattern breakout on the 4-hour chart
• Bitcoin’s stability above $110,000 provides favorable conditions for altcoin rallies
• Key resistance levels sit at $0.85 and $0.92, with support holding at $0.77

Cardano price has extended its gains on Monday, trading above $0.84 as bulls regain control of the market. The token rebounded from key support levels last week and is now showing signs of continued upward momentum.

The broader crypto market has entered a consolidation phase below the $4 trillion mark after peaking in mid-August. Bitcoin remains stable above $110,000, creating favorable conditions for altcoin movements.

Derivatives data from Coinglass shows improving sentiment for Cardano. The OI-Weighted Funding Rate flipped positive on September 2 and maintained a positive value of 0.0079% on Monday. This indicates more traders are betting on price increases rather than declines.

On-chain metrics also support the bullish outlook. DefiLlama data reveals that ADA’s stablecoin market capitalization reached a record high of $40.37 million on Sunday. Rising stablecoin activity increases network usage and can attract more users to the ecosystem.

Technical Analysis Shows Breakout Pattern

Technical analysis on the 4-hour chart confirms a bullish falling wedge pattern breakout. The pattern formed by connecting multiple high and low levels from August 14 broke to the upside on Sunday.

The Relative Strength Index on the 4-hour chart reads 58, above the neutral level of 50. The MACD indicator also displayed a bullish crossover, reinforcing the positive outlook.

On the daily chart, Cardano found support around its 100-day Exponential Moving Average at $0.77 on September 1. The token recovered 4.19% by Sunday and continues to hold above this level.

Cardano Price Prediction

If ADA maintains its upward momentum, it could extend the rally toward the 61.8% Fibonacci retracement at $0.92. A daily close above the resistance at $0.84 could push the token toward its August 14 high of $1.02.

The RSI on the daily chart hovers around the neutral level of 50, indicating indecision among traders. For the recovery rally to sustain, the RSI must MOVE above neutral territory.

Key support remains at the 100-day EMA at $0.77. The 200-day SMA provides additional support at $0.72, with deeper support at $0.62.

Short-term resistance sits at $0.83-$0.85, where the 50-day SMA creates a horizontal barrier. Breaking above this zone could trigger further gains toward $1.00.

The current RSI reading of around 49 on longer timeframes shows neutral momentum. This suggests ADA could move in either direction based on broader market conditions.

Market conditions appear favorable for continued gains. Bitcoin’s stability above $110,000 historically leads to liquidity rotating into altcoins during consolidation periods.

The MACD on the daily chart shows a falling red histogram bar below neutral, suggesting fading bearish momentum. This technical setup supports the potential for further upside movement.

Cardano is currently trading at approximately $0.82-$0.84, showing resilience after the August bounce from lower levels.