Cardano (ADA) price prediction: The foundation invests eight figures in ADA to support ecological development. Short-term bullish 50% to $1.2.

Cardano's current trading price is $0.8178. Technical charts show a double bottom pattern forming within the demand zone, with the first bottom established on September 2nd and the second bottom being constructed at the current level. The Cardano Foundation announced an investment of eight-digit ADA for stablecoin liquidity development, while allocating 220 million ADA to strengthen governance structure. Analysts indicate that if it can break through the $0.9614 resistance level, the short-term target price could reach $1.20, representing a 50% rise.

Technical Patterns and Market Structure Changes

Cardano broke below the ascending channel on September 22, found support in the demand area, and entered a consolidation phase. The formation of the double bottom pattern reinforced the importance of the $0.7682 support level, which has become a key foundation for price recovery. Since the cycle bottom was formed, higher lows have consistently accumulated, marking a shift in market structure from bearish to bullish territory.

The recovery of the 50-day exponential moving average represents a key development, as this average typically serves as a watershed for the bull and bear phases of cryptocurrency. The Relative Strength Index shows a divergence at the bottom, highly similar to the technical characteristics before the start of the major bull market from 2020 to 2021. The current price movement shows resilience after defending critical support levels, laying the groundwork for subsequent rises.

Resistance Level and Price Target Analysis

The immediate resistance level is at $0.9614. A breakthrough at this level will confirm upward momentum and open the path to the $1.20 target. Such a breakthrough could bring about a rise of approximately 50%, and technical setups indicate that once the resistance level is breached, it could trigger a significant market movement that defines the cycle's direction.

If it stays above $0.7682, the recovery path will remain intact. Falling below this level would negate the bullish structure and trigger a deeper correction. Long-term forecasts indicate that if the current cycle replicates previous patterns, the price could target the $2.00 to $3.00 range. Some analysts have even set their target near the historical highs of $4.00 to $5.00.

Foundation Ecosystem Construction Strategic Layout

The Cardano Foundation commits to allocating an eight-figure amount of ADA to enhance stablecoin liquidity, with the aim of improving the decentralized financial stability across the network. By ensuring reliable access to stable assets within Cardano's expanded infrastructure, the enhanced liquidity depth will support broader ecosystem adoption and practical value.

The foundation allocated 220 million ADA to decentralized representatives, reinforcing the governance structure and promoting network inclusivity. The allocation of 2 million ADA to the Venture Hub project will foster innovation and entrepreneurial spirit within the Cardano ecosystem. The roadmap also includes a $10 million real-world asset (RWA) program that will expand the practical application scenarios of ADA beyond speculative trading.

Investment Strategies and Risk Management

Based on the technical setup of the double bottom pattern, it is recommended to accumulate on dips above the support level of 0.7682 USD. A breakout above the resistance level of 0.9614 USD can be considered as a signal to increase positions, with a short-term target price set at 1.20 USD. Investors should pay attention to position management and avoid excessive leverage near key resistance levels.

In terms of risk control, if it breaks the support level of 0.7682 US dollars, consider reducing positions, with the next support level at the psychological level of 0.70 US dollars. It is recommended to judge in conjunction with the overall trend of Bitcoin; if the market undergoes adjustments, Cardano may follow with a pullback. Long-term investors can pay attention to the progress of the foundation's ecological construction, as the expansion of actual application scenarios will provide fundamental support.

Conclusion

Cardano is at a critical point of resonance between technical and fundamental aspects. The formation of a double bottom pattern and large-scale ecological investments by the foundation together lay the foundation for price rise. Technical indicators show that the market structure has undergone significant changes, while the continuous development of the ecosystem provides support for long-term value. With the testing of key resistance levels and the gradual implementation of ecological projects, whether Cardano can achieve a cyclical breakthrough will become the focus of market attention.

Disclaimer: This article is for news information only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should make decisions cautiously.