TLDR:
- Cardano price has rebounded 4% and currently trades above $0.70
- Technical analysis shows a bullish inverted head and shoulder pattern suggesting a possible 40% rally to $1.08
- A bullish flag pattern on ADA’s 3-day chart indicates potential for an 89% rally to $1.33
- Charles Hoskinson is fighting allegations about a $318M ADA transfer from unclaimed ICO vouchers
- Derivatives market data shows positive funding rates since mid-April, signaling strong demand for long positions
Cardano (ADA) price has shown resilience in recent trading, maintaining levels above $0.70 despite market volatility. The cryptocurrency has formed several bullish patterns that suggest a significant upward move could be on the horizon, while founder Charles Hoskinson addresses controversy surrounding token governance.
The ADA price currently sits at around $0.70, representing a 4.32% intraday rise. This creates a strong bullish engulfing candle that undermines the minor pullback experienced over the weekend.
Since March, Cardano has struggled to break past the $0.762 supply zone. During this sideways movement, the price has created two swing lows at $0.682 and $0.557, resulting in a reversal rally that now challenges the $0.762 resistance level.
Technical analysts point to the formation of an inverted head and shoulder pattern. The neckline of this pattern coincides with the 23.60% Fibonacci level near the $0.762 supply zone.
For this bullish pattern to confirm, ADA must sustain a daily closing price above the neckline. If successful, the target is calculated by adding the depth of the head to the breakout point, suggesting a price move of more than 40% to the 50% Fibonacci level at $1.082.
The RSI indicator floating above the halfway line supports this upside potential. However, the Chaikin Money Flow (CMF) Index remains negative at -0.08, reflecting some underlying weakness.
Bullish Flag Pattern Emerges
Another technical formation has caught traders’ attention. A bullish flag pattern has appeared on the 3-day ADA/USDT chart, following ADA’s peak above $1.30 in late 2024.
The price has moved within a descending channel from January 2025 until now, reaching resistance points at $1.30, $1.10, and $0.90, while maintaining support near $0.63, $0.60, and $0.56.
Analysts predict that a successful breakout above the flag’s upper trendline could push ADA towards $1.33, representing an 89.18% increase from its current price.
Some traders have even more optimistic projections, suggesting that if ADA breaks above the $0.73 resistance, it could rally to $1.60 in the short term, with long-term projections potentially reaching $10.
The current price action shows growing momentum, supported by a clean uptrend pattern on the daily chart and increasing volume near breakout levels.
If the bulls fail to maintain momentum, however, a pattern breakdown could send Cardano down to recent swing lows at $0.557 or even $0.226.
Cardano has seen a modest 8% increase in value during the past month, though its weekly performance shows a decline exceeding 2%. The stability above $0.70 suggests firm support from investors, particularly around the $0.65 zone.
TGE Controversy and Hoskinson’s Response
While technical indicators paint a bullish picture, Cardano has faced controversy. Allegations have surfaced from Masato Alexander, who claims Charles Hoskinson and Input Output Global (IOG) altered the Cardano Ledger to relocate over 318 million ADA from unclaimed ICO vouchers to network reserves.
In 2021, Charles Hoskinson unilaterally used his genesis keys to REWRITE the Cardano ledger and take control of ₳318m ($619m)
By comparison, when the DAO hack happened in 2016, the Ethereum community forked over $60m.
One of the largest ledger reorgs in blockchain history: 🧵
— masato_alexander (@masatoalexander) May 7, 2025
The allegations suggest that funds transferred via MIR (Move Instantaneous Rewards) transactions lack transparency. The complainant questions Hoskinson’s defense of returning funds to buyers or IntersectMBO, alleging that only about $7 million was publicly transferred.
Hoskinson has strongly refuted these allegations, stating that the TGE is finalizing its last voucher redemption. He maintains that 99.8% of ADA vouchers were redeemed, and the remaining 0.2% were lawfully donated to Intersect after the 7-year deadline. Hoskinson has warned of legal action against those spreading what he considers false rumors.
Blockchain analyst Jonathan Morgan has rejected the allegations, saying they are based on misdirection. Morgan emphasized that the protocol upgrade was a consensus-driven event rather than a unilateral rewrite, and that over 300 million ADA were successfully returned to rightful claimants.
The derivatives market data supports a bullish outlook for Cardano. Coinglass data shows the ADA OI-weighted funding rate has maintained positive values since mid-April, indicating that long-position traders have continuously paid funding fees to short-position traders throughout this bullish market phase.
The rise in perpetual futures trading and ongoing price movement demonstrates that more traders expect the altcoin to increase in value. Increased Open Interest values show strong participation from traders who have taken leveraged long positions.
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