Cardano (ADA) Price: Will the Inverted Head and Shoulders Pattern Trigger a 50% Rally?

TLDR

Table of Contents

Cardano price currently trading at approximately $0.82
Technical analysis shows potential 50% rally to $1.137 based on inverted head and shoulders pattern
Open Interest approaching $1 billion indicates high investor interest in ADA futures
Brave browser (85 million users) recently integrated Cardano blockchain into its multi-chain wallet
Charles Hoskinson defended the off-chain sweep mechanism for unredeemed vouchers

Cardano’s price has been showing promising movements lately, with a 2% increase this week following a 19% surge last week. The cryptocurrency is currently trading at around $0.82 as it consolidates below the $0.837 resistance level.

Technical analysis reveals an inverted head and shoulders pattern on the 4-hour chart. This bullish formation suggests a potential 50% rally to $1.137 if ADA can break above the current resistance.

The pattern has formed a neckline at the $0.75 zone. Analysts calculate a 49.85% breakout target by adding the pattern’s depth to this neckline, which coincides with the previous peak at $1.137.

Traders should note a minor resistance level at $0.983, which could introduce some volatility as the price approaches the psychologically important $1 mark.

Technical indicators are aligning with this bullish outlook. The MACD and signal lines are preparing for a positive crossover, which would restart an uptrend.

The Relative Strength Index (RSI) recently dropped from the overbought zone to the halfway line, causing the current consolidation phase. However, it’s now showing a V-shaped reversal from this level, suggesting renewed buying pressure.

Growing Investor Interest

Open Interest in ADA futures has jumped by 6.61% to reach $987 million, approaching the significant $1 billion milestone. This indicates substantial investor interest and optimism about Cardano’s future performance.

The funding rate has also spiked to 0.0141%, revealing increased bullish activity in the derivatives market. These metrics suggest that traders are anticipating continued upward movement in ADA prices.

Charles Hoskinson, Cardano’s founder, has recently addressed rumors about unredeemed vouchers. He explained that the sweep of unredeemed Genesis UTXOs (voucher holders) was a necessary security and compliance measure.

Hoskinson clarified that as many original voucher buyers failed to redeem their ADA, the process was moved from an “on-chain process” to an “off-chain sweep” to reduce fraud risk. He emphasized that proper communication was maintained with unredeemed voucher purchasers throughout this process.

Brave Integration Boosts Ecosystem Reach

In a major development for the ecosystem, Brave browser has integrated the Cardano blockchain into its built-in multi-chain wallet. This opens up access to Cardano for Brave’s user base of over 85 million people.

🔥 Big news: Brave is adding @Cardano support!
Brave and @InputOutputHK are teaming up to integrate Cardano's blockchain into our browser's multi-chain wallet. pic.twitter.com/4IK8x2EIiu
— Brave (@brave) May 12, 2025

This integration represents a substantial expansion of Cardano’s potential user base. Brave’s privacy-focused browser already attracts crypto-savvy users, making this a natural fit for both platforms.

The market has not yet shown a strong reaction to this news, which could present an opportunity for investors who believe in the long-term impact of this integration.

Behind the scenes, other developments are also strengthening Cardano’s position. BitcoinOS is making progress in positioning Cardano as a leading DeFi side chain to Bitcoin.

Cardano side-chain projects such as Midgard and Midnight aim to bring improved scalability and privacy features to the blockchain. The 2024 Chang upgrade established full on-chain governance, further enhancing Cardano’s decentralization credentials.

While Cardano shows promise with these developments and its strong community, its blockchain ecosystem still faces adoption challenges compared to peers like Ethereum and Solana, which currently have higher total value locked (TVL) and on-chain activity.

The current price movement occurs against a backdrop of improving conditions for risk assets, with easing US inflation and reduced tensions in global trade potentially benefiting cryptocurrencies like Cardano in the coming weeks.

Stay Ahead of the Market with Benzinga Pro!

Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders: