Cardano Eyes 155% Breakout as Market Volatility Tests ADA Holders

• Cardano is trading at $0.87 after a 1.29% drop, but has gained over 135% in the past three weeks.

• A breakout from a falling wedge could push ADA to $2.30 if it confirms support at $0.89.

• Open interest and DeFi activity are rising, and an upcoming audit may boost investor confidence.

Cardano (ADA) is trading at $0.87 on July 22, marking a 1.29% dip over the past 24 hours. The decline is part of a broader market correction that has triggered over $550 million in liquidations across crypto exchanges. Despite short-term losses, ADA is positioning for a major move upward, supported by bullish technical signals and strong fundamentals.

Cardano Breaks Out of Falling Wedge as Bulls Target $2.30

Cardano has rallied from $0.37 to $0.87 in just three weeks, gaining over 135%. Technical analysts note that ADA has broken out of a falling wedge pattern, often a precursor to a major price surge. If the token can flip the $0.89 resistance into support, the projected breakout target is $2.30, representing a possible 155% rally.

The sustainability of this breakout depends on a decisive close above the $0.89 resistance. Failure to do so could push ADA back into consolidation within the wedge. While the relative strength index (RSI) signals overbought conditions, bullish momentum remains intact. A golden crossover between the 50-day and 200-day EMAs is forming, suggesting further upside if confirmed.

Open interest in ADA has surged to an all-time high of $1.74 billion, according to Coinglass. This represents a near $1 billion increase since early July, when open interest hovered around $777 million. Rising open interest is typically a signal of growing investor confidence and market engagement.

Meanwhile, Cardano’s DeFi ecosystem has expanded significantly. Data from DeFiLlama shows that total value locked (TVL) has jumped 72% this month, reaching $400 million. Continued open interest and DeFi participation growth may support ADA in sustaining a bullish trajectory.

Hoskinson Projects Cardano to Overtake Ethereum

Cardano founder Charles Hoskinson has responded to governance concerns by reaffirming his vision for the project. Speaking on the future of the network, he stated, “Cardano will be bigger than Ethereum,” emphasizing the importance of transparency and leadership accountability.

The Cardano Foundation is expected to release a formal audit report in mid-August addressing recent allegations involving 350 million ADA tokens. The report could influence market sentiment and further define Cardano’s trajectory heading into Q3 2025.

If ADA maintains its current momentum, with technical patterns aligning and network fundamentals strengthening, a surge to $2.30 remains on the table. Traders and investors will closely watch for a confirmed breakout and further developments from the upcoming audit report.