Is ADA consolidating in a bullish flag pattern with over 300% potential increase?

Cardano(ADA) is currently trading around $0.39, and the weekly chart presents a highly potential technical pattern — a bullish flag formation is brewing. This pattern typically indicates an imminent strong rebound.

Logic Behind the Bullish Flag Formation

ADA’s rapid rise in spring 2025 formed the “pole,” while the subsequent months of correction built the “flag” part. Although this downward channel appears weak, the broad upward trend remains intact, leading the market to interpret it as a continuation signal rather than a reversal warning.

When the price consolidates within a narrow channel and trading volume gradually diminishes, it often signifies that buyers are accumulating strength. Once ADA breaks above the upper boundary of this flag, the measured move target is approximately 303%, which would push the price toward a key resistance zone near $1.71.

Long-term Support Line Reasserts Its Role

From a weekly perspective, Cardano is rebounding from a long-term upward trend line — a line that has defended the price lows multiple times since 2023. Buyers have repeatedly stepped in at this dynamic support level, including mid-2023, year-end, and early 2024, indicating sustained demand along this diagonal.

Even after a sharp correction within the year, ADA has not broken below this critical trend line, maintaining the integrity of its multi-year upward trajectory.

Fibonacci Retracement and Mid-term Targets

ADA is currently within the 0.382 and 0.236 Fibonacci retracement zones of the previous upward wave, levels that often serve as early reversal points during market stabilization. If buying momentum continues, the next major test is at $0.7285 — a mid-term resistance that also corresponds to a key level in the Fibonacci grid.

Breaking above $0.7285, the Fibonacci target above $0.9525( becomes the next focus, aligning with the predicted upward target zone from technical analysis.

Trading Logic Summary

Current Situation: ADA is above the long-term trend line, with candlestick structure continuously improving

Recent Key Points: Hold the trend line → Target $0.7285 → If momentum persists, look toward $0.9525

Final Signal: A weekly close above the upper boundary of the bullish flag will confirm the continuation pattern, validating the $1.71 target price

Although momentum indicators like RSI currently show calmness)RSI around 34(, the compression phase at the weekly level often only reacts after the price breaks out, which is not enough to negate the current technical setup.