Cardano (ADA) Holds Strong as Market Pulls Back – Analysts Eye 70% Upside Potential

Despite a sharp pullback across the crypto market, Cardano (ADA) has emerged as one of the few top assets holding steady. On Thursday, ADA briefly broke above $1.02, its highest price in five months, before retracing alongside Bitcoin and other major cryptocurrencies.

The broader market slump followed U.S. macroeconomic data showing July’s Producer Price Index (PPI) at 3.3% year-over-year, well above expectations, dampening hopes for imminent interest rate cuts. This triggered over $1.05 billion in crypto liquidations, according to CoinGlass.

Bitcoin, which had hit a new all-time high of $124,128, fell back to the $117,000–$118,000 range. Yet Cardano remained resilient, posting a 3.5% daily gain and hovering between $0.89 and $0.91, holding firmly above its recent breakout zone.

Technical Breakout Points to Multi-Month Rally

Analyst Ali Martinez highlighted that ADA has broken out of a descending channel it has traded in since Q4 2024. The decisive move above $0.84 marks a potential shift in trend, with Martinez setting a target of $1.50, representing a possible 70% gain from current levels.

The chart pattern mirrors ADA’s previous cycle, where a prolonged consolidation phase was followed by a steep rally. Analysts suggest the token could revisit resistance near $1.80 before attempting a breakout toward new highs.

From a technical perspective, ADA is trading above its 50-day and 200-day moving averages—currently at $0.82 and $0.79—which have turned upward, signaling a bullish reversal. Volume expansion during the recent rally further confirms strong buying interest.

Cardano’s Institutional Interest and Market Positioning

Institutional participation appears to be reinforcing ADA’s price stability. With Cardano’s growing adoption in decentralized finance, identity solutions, and enterprise applications, analysts expect capital rotation from larger assets like Bitcoin and Ethereum into mid-cap coins with higher growth potential.

Grayscale’s increased allocation to ADA, coupled with pending regulatory reviews such as the proposed ADA ETF, has strengthened investor confidence. The Genius Act and Clarity Act are also providing a more favorable legal framework for blockchain projects, potentially attracting further institutional inflows.

As of this writing, ADA is trading around $0.90—up over 20% for the week. If buyers manage to convert $1.00 into firm support, the next resistance levels lie at $1.08–$1.11, followed by $1.20. Breaking these could set the stage for a rally toward $1.50 and beyond.

With robust technicals, favorable on-chain metrics, and institutional momentum, Cardano appears well-positioned to remain a top performer in the coming months.