Cardano breaks out of a major bullish formation, with the setup sparking optimism that a notable price uptick is on the horizon if history repeats.
The blue-chip asset is up 3% today, joining a broader market trend. However, according to historical data shared by top crypto pundit Lark Davies, ADA could ramp things up with a 44% price rally.
Cardano Bull Pennant Breakout
Specifically, he based this bullish outlook on a breakout from a bullish pennant on the daily timeframe yesterday. After a period of price consolidation within the structure, which spanned from the August 14 high of $1.020 until September 7, Cardano has finally broken free.
Notably, this setup could spur a substantial price rally for Cardano. Davis identified that ADA surged 44% in a few weeks the last time this happened.
For context, Cardano formed a similar pattern from a high of $0.935 in July 21 and trended within it until an August 3 breakout. Upon defying the pattern, it surged 44% to reach the current structure’s starting point at $1.02 on August 14.
While history may not actually repeat, it often rhymes. As a result, Davis questioned if this might set ADA up for a 44% rally from its breakout point of $0.836. Notably, this would see Cardano reach $1.205, which is 36% away from its current market price.
Multiple Confirmations of Cardano Price Breakout
Meanwhile, analyst Ali Martinez also confirmed that Cardano has broken out. He shared in an X post today, predicting that the token’s next target is $0.92.
An accompanying chart also shows that ADA emerged from a bull pennant, but on the 4-hour timeframe. Cardano also broke out on September 7 and has sustained the breakout, supporting the bullish outlook.
The rally to $0.92 aligns with the 0.382 Fibonacci retracement level, representing a mere 4% rally from the current market price.
Moreover, TapTools’ X handle highlighted the recent downtrend breakout, forecasting a potential rally to over $1. Notably, there are much higher price expectations for Cardano, with a notable analyst claiming that selling below $5 is selling short of the token’s bullish potential this cycle.
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