Cardano (ADA) is showing a bullish technical pattern within a long-term descending channel, making a break above the upper boundary a potential turning point for the medium-term trend.

On Oct. 10, blockchain outlet The Crypto Basic reported that TradingView analyst Akbar Karimzpe assessed that a major bullish pattern is forming on ADA’s weekly chart and that another sharp rise could follow if it breaks above the upper trend line.

The key issue is whether it can pierce the top of the channel. ADA has been moving within a descending channel formed after the 2021 peak. The upper trend line has kept falling, while the lower zone has acted as key support. Karimzpe said another rally could be possible if ADA moves within the pattern and then pushes above the upper boundary.

The analysis has drawn attention because there has been a similar move in the past. He pointed out that a rise of about 1,600 percent followed an inverse head-and-shoulders pattern. If a similar formation plays out again, it could provide a catalyst to reverse the long-term downtrend, he said.

He also presented price levels. Based on the chart at the time, ADA was trading at about $0.2558 and was still inside the descending channel. If a breakout above the top is confirmed, $0.3875 and $0.5627 were cited as key upside targets. If it continues to move within the channel, the broader bearish structure remains intact. That means a break above the channel top must come first before the market can talk about a bullish turn.

Support is also clear. Karimzpe identified $0.1119, the bottom of the pattern, as a critical support level. He said the bullish scenario would be invalidated if that level breaks, raising the risk of further declines. ADA must hold within the pattern and then decisively break above the top for a recovery outlook to gain traction, he added.

Another analyst offered a similar view. Crypto Crew University claimed ADA is creating a flow similar to the technical structure seen ahead of a roughly 200 percent rise in 2023. The analyst said the monthly relative strength index (RSI) is nearing a moving average and that an upward break above that average could be a 'buying opportunity' signal. The analyst added that Fibonacci moving average bands can be used to gauge profit-taking zones.

In 2023, ADA rose about 250 percent, climbing from about $0.23 in June to $0.81 in March 2024. With no clear large-cap altcoin rally at the time, that has helped drive attention to the possibility of a repeat technical rebound.

Still, bullish signals have not yet entered the confirmation stage. RSI is approaching a key moving average but has not yet made an upward crossover, and the price has also failed to clear the top of the descending channel. ADA’s next move is therefore expected to depend on whether it breaks above the upper boundary and whether it can defend the $0.1119 support level.