Altcoin Season Awakes: Can Cardano Lead the Charge and Hit $2.40?

The altcoin market looks set for an interesting few weeks as key market indicators point to the possibility of a big move. Altcoin Dominance has slipped to , a zone where strong rallies for altcoins have often started in the past.

While Bitcoin’s next move remains uncertain, a handful of altcoins are starting to show strength. Among them is Cardano (ADA), which continues to make news. New chart patterns now hint that ADA could be gearing up for a breakout if an altcoin season kicks off this summer.

On the weekly chart, Cardano has been trapped in a falling channel since its peak in December 2024. this pattern is marked by descending resistance and support levels, with a brief breakout earlier this year following a tweet from Donald Trump. Historically, when assets break out from such falling channels, it often leads to increased volatility and potential upside.

If ADA continues to rise, the price could target previous highs around $1.10 to $1.13, levels it last saw in early 2025.

However, Cardano has recently also formed a falling wedge pattern, another bullish formation. This pattern could lead to a breakout towards $0.77 to $0.78 in the short term.

The analyst also warned about a possible dip back to $0.65–$0.63 before any rally takes hold. Despite short-term fluctuations, the long-term outlook for ADA remains positive.

In an even more bullish scenario, if the market enters a strong altcoin season and institutional buying picks up, ADA could surpass $1.70 and head towards $2.20, even reaching $2.40. This higher range aligns with another Fibonacci extension level known as the golden pocket extension, a favorite target zone for traders in powerful uptrends.

The analyst said that while $1.70 might act as the first major resistance, $2.20–$2.40 would be realistic if altcoins begin to outperform Bitcoin.