Cardano (ADA) has broken above a long-term downtrend line, raising expectations for further gains.

On Oct. 6 (local time), blockchain media outlet The Crypto Basic reported that crypto analyst Lucky Luciano sees ADA breaking out of a long-term decline and preparing for a major rally.

Luciano released an ADA/USDT daily chart and said ADA is rebuilding a parabolic uptrend. The chart shows ADA hovering near a key support zone for months before recently moving above the long-term downtrend line.

Price action also supports the rebound. ADA was trading around $0.27 and has risen about 9 percent over the past seven days. Luciano's chart, however, puts the short-term target zone at about 60 percent above current levels.

The market is citing the $0.28 to $0.30 range as the next inflection point. After recently moving above $0.1387, ADA climbed to around $0.276 at one point on Oct. 6, and observers say a retest of $0.30 is possible if the uptrend continues. If it breaks that resistance, the next path is $0.39, about 40 percent above the current ADA price.

The rebound has also recovered a significant portion of the mid- to long-term decline. ADA entered a long downtrend after peaking around $1.0165 in mid-2025, and confirmed support at a $0.1387 demand zone in June this year. The drop from the peak reached 86 percent. ADA later regained $0.26 in September and rose to $0.2759 this week, rebounding more than 90 percent from the low.

Technical indicators are also tilting bullish. On the TradingView daily chart, ADA traded above the 50-day moving average and the 200-day moving average. The moving average convergence/divergence (MACD) also showed a bullish signal, and the relative strength index (RSI) was presented as close to 70, indicating strong upward momentum.

Still, holding support is important on a weekly chart basis. The $0.23 to $0.27 zone was presented as key support, and holding that range could keep the bullish structure intact. If a weekly candle closes below $0.14, the current bullish scenario would be invalidated.

Upside targets were also laid out in stages. If it clears the $0.30 to $0.40 resistance zone, $0.80 and $1.30 were cited as the next major targets. Another analysis said that if it breaks both levels, $3.10 could come into play.

Some analysts in the market are discussing upside targets for ADA of $5 and $10, but key conditions for further gains are holding the $0.23 to $0.27 support zone and breaking above the $0.28 to $0.30 resistance zone.

In my opinion, $ADA is setting it's tone for another parabolic run. https://t.co/gB1ztm1mTS