Cardano Price Surges 25% as Technical Indicators Signal Potential 40% Rally

• ADA surged 25% to $0.6320, and technical patterns suggest a potential 40% rally to $0.8630. 

• The Snek meme coin rallied 11%, boosting trading activity across Cardano’s ecosystem. 

• Futures open interest hit $983 million, and an upcoming airdrop could provide additional support for price gains.

Cardano (ADA) has experienced a notable price surge, climbing 25% from its monthly low to reach $0.6320 on July 10, marking its highest level since June 16. The cryptocurrency’s rally coincided with broader market recovery and renewed interest in the Cardano ecosystem.

Trading volume surged 87% to $1.1 billion during the rally, according to CoinMarketCap data. This increased activity suggests strong investor participation as ADA broke through key resistance levels.

Double Bottom Pattern Signals Bullish Momentum

Technical analysis reveals ADA has formed a double bottom pattern at $0.5086, a level that previously acted as support in April and June. This formation typically indicates exhausted selling pressure and potential trend reversal.

The pattern’s neckline is $0.8630, representing ADA’s May high and a potential 40% upside target from current levels. A successful break above this resistance could trigger additional gains toward the pattern’s full target of $1.2153, representing a 93% increase from present prices.

Supporting indicators reinforce the bullish outlook. The Relative Strength Index (RSI) has climbed from 29 to 56, crossing above the neutral 50 level for the first time since May 23. The MACD indicator shows a bullish crossover, with both lines approaching the zero line for the first time in two months.

Snek Rally Boosts Cardano Ecosystem Activity

The rally in Snek, Cardano’s largest meme coin with a $163 million market capitalization, has increased ecosystem activity. Snek gained 11% on July 10, potentially attracting attention to other Cardano-based tokens, including World Mobile Token, Liqwid Finance, and Iagon.

This renewed interest has translated into higher decentralized exchange volumes on Cardano’s network. DeFi Llama data shows the network processed $3.1 million in trading volume over 24 hours, the highest level since July 3.

The ecosystem’s growing activity helps counter persistent criticisms that Cardano lacks meaningful usage and development activity.

Futures market data indicates growing institutional interest in ADA. Open interest has reached $983 million, the highest level since March and approaching the $1 billion milestone. This metric suggests increased trader confidence and potential for sustained price movements.

Additional catalyst comes from the upcoming Glacier airdrop, which will distribute NIGHT tokens to ADA holders. These tokens can be converted to cash, providing value to existing stakeholders directly.

The combination of technical breakout patterns, increased ecosystem activity, and growing institutional interest positions Cardano for potential continued gains. The immediate target remains the $0.8630 neckline resistance, with further upside possible upon successful breakthrough.