An analysis says Cardano (ADA) is maintaining a long-term upward structure near a multi-year support level. It also raised the prospect that if the current zone holds, there could be room for a rise to $1.70.

The Crypto Basic, a blockchain outlet, reported on May 5 that market analyst BFB assessed Cardano as preparing for a bullish reversal in its long-term structure. BFB said at least about a year of holding may be needed for this trend to fully take hold.

Cardano is trading around $0.252. It edged down over the past 24 hours, and while bitcoin rose above $81,000 to its highest in about 3 months, altcoins have broadly been weak.

The analysis focuses on Cardano's long-term structure rather than short-term price moves. The analyst pointed out that as Cardano is holding its price range near a key support level, a positive trend can still be expected from a medium- to long-term view.

The analysis highlighted a rising support trendline that has continued from previous market cycles. The trendline served as a floor during a sideways period in 2020, and later became the starting point for Cardano's rebound to the 2021 peak zone as market conditions improved.

BFB interpreted the current zone as a bottom range where accumulation could occur. Repeated defenses of the support level show selling pressure is gradually being absorbed, BFB said. It placed significance on the price holding support even as overall market sentiment remains cautious.

A larger symmetrical triangle pattern can also be seen on the weekly chart. An upward support trendline underpins prices from below, while a downward resistance line that has blocked multiple rebounds since December 2024 presses from above.

BFB said decisive moves often follow when price action remains compressed between support and resistance. It added that the two boundary lines are being held relatively clearly, making it notable that market participants are closely watching Cardano's price action.

The key is whether the current support zone holds. If Cardano stays above this zone, the long-term structure remains intact. If it then rises to the upper resistance line and breaks through it, it could confirm a momentum shift that has been lacking over the past year. BFB assessed that while it may look weak on the surface, the structure itself favors bulls over the long term. It added that at least about a year of holding may be needed until the pattern is fully formed.

If a breakout is confirmed, $1.70 was presented as a target zone. That would represent a 575 percent rise from the current price. The analysis also attached the caveat that sustained momentum and a favorable market environment would be needed for such a scenario to materialise. It said the move should be seen as a prolonged sideways and converging phase until a break above resistance occurs.

In short-term flows, signs of expanding momentum were also detected. Over the past 24 hours, Cardano open interest rose 4.6 percent and futures trading volume jumped 35 percent. Spot trading volume also increased 56 percent. In 24-hour spot flows, it suggests investors have been accumulating Cardano rather than moving holdings off exchanges.

As a result, the next turning point for the Cardano market is expected to be whether the defense of long-term support leads to an actual breakout attempt. While the current structure is being maintained, the long-term bullish scenario remains in a validation stage until a break above the upper resistance line is confirmed.

"$ADA setting up as a long horizon play, minimum one year hold to let the thesis fully cook. Structure favoring bulls and accumulation zones lining up clean. Roughly 500% of upside on the table from spot. pic.twitter.com/kUQF6mTPhL"