Cardano (ADA) has been showing impressive recovery signs, with its price following a clear bullish pattern. A double bottom formation is now visible on the charts, suggesting that ADA could be preparing for a substantial recovery, potentially climbing back above the $1 mark in the near future.
Strong Price Gains and a Positive Market Outlook
Cardano recently surged to an intraday high of $0.74, showing a 25.5% increase over the past week and a 42% rise from its year-to-date low. As of the latest data, ADA is holding onto a 3.9% gain over the past 24 hours, with a market capitalization of $27 billion.
This price movement follows several bullish developments for Cardano, including the announcement from Emurgo, one of Cardano’s founding teams. They revealed the launch of the Cardano Card, a multi-functional payment tool that turns ADA into a usable asset for payments and even yield generation.
The Cardano Card is designed to offer more than just a basic crypto payment solution. It will allow users to stake ADA, earn yields from decentralized finance (DeFi), and participate in real-world asset investments. Furthermore, users will also have access to collateralized loans, and part of the card’s profits will be directed into the Cardano treasury, making it a comprehensive financial tool for ADA holders.
On-Chain Strength and Renewed Investor Interest
On-chain data also points to the strength of ADA’s recovery. According to DeFiLlama, the total value locked (TVL) in Cardano’s decentralized finance protocols has surged by 93% in just one week. This signals increasing capital inflows and a renewed interest in Cardano from investors. Since July began, TVL within Cardano’s DeFi protocols has risen by 28%, reaching $438 million.
A rise in TVL typically indicates growing network activity, better liquidity, and greater user participation. These are all factors that could support the price of ADA as demand builds for the blockchain’s services.
Shifting Market Sentiment
Sentiment in the market is also shifting positively. Data from CoinGlass shows that Cardano’s weighted funding rate has risen to 0.012%, indicating that more traders are betting on ADA’s price going up. This is a strong sign that market participants are confident in Cardano’s short-term outlook.
Technical Indicators: Double Bottom Pattern
From a technical perspective, ADA’s price action has been forming a double bottom pattern since March. The support level for this pattern sits around $0.50, while the neckline is at $0.76. Double bottom patterns are typically considered bullish reversal signals, meaning that once ADA breaks the neckline at $0.76, it could experience significant upward momentum.
Moreover, the 20-day simple moving average (SMA) is about to cross above the 50-day SMA, a formation known as the golden cross, which further confirms the potential for a continued rally.
ADA Price Prediction: Where Can It Go?
If ADA successfully breaks above the $0.76 resistance level, analysts project that it could target the $1.03 level. This target aligns with the 78.6% Fibonacci retracement level and represents a 35% rise from the current price. Some analysts are even projecting more ambitious price targets in the range of $3 to $5, suggesting that ADA’s recovery might just be starting.
In a tweet on July 16, crypto influencer Crispy shared his excitement, claiming that ADA’s rally is just the calm before the storm. “What’s your personal price target for ADA this bull run?” he asked, hinting at the potential for much higher prices in the coming months.
BREAKING! $ADA BELOW $1 IS SEVERELY UNDERVALUED.
Imagine the tears when you see $ADA at $3 in August! pic.twitter.com/Emwvp3D9lb
— Mr Banana (@D_realMrBanana) July 15, 2025
Conclusion: A Bright Future for Cardano?
With positive technical indicators, growing institutional support, and strong market sentiment, Cardano is shaping up for a potential breakout. As the network continues to attract investors, particularly with the launch of the Cardano Card and increased activity in its DeFi protocols, ADA looks set for a continued recovery. If the cryptocurrency market continues to grow, ADA could reach new heights and prove that its recent price action is just the beginning of something much larger.
