ADA breaks out of the bullish flag pattern – Preparing for a 150% jump?

ADA of Cardano is showing clear breakout signals after months of trading in an accumulation state, raising hopes for a strong bullish wave. Some analysts believe that this cryptocurrency could double in value in just the coming weeks.

Escape from the bullish flag pattern

According to Clifton Fx's analysis, the three-day chart of ADA has just confirmed a breakout from the bullish flag pattern – an accumulation pattern that has lasted for several months. This breakout comes after the price has maintained a steady upward trend from the lower support line, while also surpassing a key resistance level.

Technically, such patterns often signal a continuing bullish cycle with strong momentum. Clifton Fx predicts that the price of ADA could record an increase of 100–150% in the coming weeks, corresponding to the range of 1.6–1.75 USD – a price level that was last seen in early 2024.

ADA price bullish in the last 24 hours

This optimistic outlook is even more pronounced as ADA recorded an impressive increase over the past 24 hours. The coin has risen approximately 11%, reaching a peak of 0.99 USD – the highest level in five months – before slightly dropping to 0.97 USD and outperforming many other top cryptocurrencies during the same period.

This bullish momentum also helps ADA become one of the most promising candidates on traders' watchlists, especially for speculators looking for opportunities with high percentage volatility.

Among them is Trader_Jibon, who predicts that ADA will soon regain the peak of November 2024 at 1.32 USD, before heading towards the highest point of mid-2022 at 1.63 USD.

Long-term holding power reaches a record – Selling pressure decreases sharply

An important signal reinforcing the bullish outlook for ADA comes from the persistent holding power of long-term hodlers (LTH). As of last Tuesday, up to 15 billion ADA have been ‘sitting still’ for more than a year, clearly reflecting that selling pressure has nearly disappeared. This development comes at the right time as the market buzzes with speculation about a new altcoin season approaching.

Age distribution of ADA supply | Source: TapToolsAt the same time, retail investors are also showing increased interest in the altcoin market in general. Data from Google Trends shows that searches for the keyword "altcoin" are at their highest level since 2021, while the interest specifically for "Cardano" has peaked in the past five months.

The search trend for 'Cardano' over the past 12 months | Source: Google TrendsIn the past, similar spikes in search levels and market interest have often coincided with strong capital rotation phases from Bitcoin to altcoins, typically such as:

• ICO boom in early 2018
• The DeFi – NFT wave in 2021

If the historical scenario repeats itself, ADA could very well become one of the leading coins in the upcoming altcoin bullish phase, especially after breaking out of the long-term accumulation pattern and receiving strong support from both technical buying and market sentiment.

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