Cardano (ADA) is flashing bullish signals after whales bought over 100 million tokens in the past 24 hours, according to on-chain analyst Ali. The buying spree comes as ADA price holds near $0.87, where traders quickly stepped in after the token dipped to $0.84 and the 4-hour RSI slid toward oversold levels at 44.
Today’s rebound follows a rocky week triggered by Bitcoin ETF outflows and wider market volatility. Now, all eyes are on Fed Chair Jerome Powell’s Jackson Hole speech on August 22.
Markets see just a 25% chance of a September rate cut, meaning a dovish surprise could fuel ADA’s rally, while hawkish signals risk reviving sell pressure.
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That said, a popular analyst believes the Cardano price is entering its most bullish phase, projecting a 740% rally towards $8 if historical cycle patterns repeat.
Analysts Eye $8 Breakout Potential for Cardano (ADA)
Traders are closely watching Cardano’s chart as it shapes up into a potential breakout structure. Analyst Javon Marks noted that ADA is showing “similar price structures to the previous bull cycle” and could be entering “its most bullish stages,” with a projected move towards $8, a 740% rally from current prices.
His thesis hinges on ADA successfully breaking through near-term resistance levels and repeating the explosive cycle patterns of past runs.
Adding to the bullish case, TapTools highlighted the development of a massive inverse head-and-shoulders pattern on ADA’s multi-month chart. This setup is one of the most reliable bullish reversal indicators in technical analysis, with a neckline breakout potentially setting the stage for a significant rally.
Moreover, CryptoQuant data highlights ADA’s recent rejection at $0.96, with the latest weekly candle closing around $0.88 after heavy volatility. The moving averages are supportive, with the 30-day SMA sitting at $0.81, comfortably below spot price, while the 100-day SMA is at $0.72, suggesting ADA is building a higher base.
Cardano price above key SMAs
In the near term, the $0.84 support zone remains critical. ADA’s bounce from $0.84 matches key Fibonacci support, giving bulls room to push toward the $0.95–$0.96 resistance.
A clean breakout above this zone could confirm the inverse head-and-shoulders setup and drive a run to $1.20 in the short term. But if $0.84 fails, ADA price risks sliding back toward $0.76.
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