- Cardano has formed and broken a bullish falling wedge pattern, indicating possible price strength after the current dip.
- Analyst Crypto Front sees a short-term target of $1.35 and a longer-term potential for $5 if market conditions improve.
- Despite a drop in ETF approval odds, Cardano’s expanding DeFi footprint and airdrop events continue to attract new holders.
Cardano (ADA) dropped 2.35% in the past 24 hours to trade at $0.72 on August 6, following a broader market decline. Despite the short-term pullback, analysts see a bullish setup taking shape. A falling wedge pattern has formed, characterized by narrowing price action between rising support and descending resistance. This structure typically signals a reversal in momentum.
Crypto analyst Crypto Front highlighted that ADA recently broke above the falling wedge resistance, which now appears to be acting as support. The price has pulled back to retest this level. Such movement often indicates bullish control, even amid temporary declines. If the breakout is sustained, the next price target is $1.35, representing a potential 101% gain from current levels.
Long-Term Forecast Points Toward $5 in Bull Market Scenario
While $1.35 is a near-term objective, Crypto Front sees further upside for ADA if market conditions turn favorable. He projects that Cardano could reach $5 during the next bull cycle. This long-term target depends on broader market momentum and sustained investor confidence. The forecast reflects optimism based on the technical structure and ecosystem growth.
Source: TradingView
Alongside the price dip, Cardano’s ETF approval odds have also seen a decline. Last month, predictions stood at 89%, but recent data from Polymarket shows a drop to 75%, followed by a rebound to 80%. The fluctuations highlight uncertainty surrounding the SEC’s stance on digital assets. Despite this, Cardano’s fundamentals continue to support investor interest.
DeFi Expansion and Airdrop Drive Holder Growth
Cardano’s growing presence in decentralized finance remains a strong point. Its total value locked (TVL) exceeds $325 million. Additionally, the ongoing Midnight airdrop has driven a rise in ADA holders, now approaching 3.1 million. These developments signal ongoing activity within the network, which may support future price recovery even if ETF approval is delayed.
