Cardano Eyes $1.31 as Analyst Highlights Key Breakout Level for ADA Bulls

The cryptocurrency market is showing renewed strength, with alternative digital assets catching investors’ attention despite ongoing debates about whether a full-blown altcoin season will materialize this year. Among the standout performers, Cardano has positioned itself as a particularly compelling opportunity, backed by encouraging technical signals that point toward sustained upward momentum.

Bitcoin’s recent surge to fresh record highs has created a ripple effect across the broader crypto market, lifting many alternative cryptocurrencies along with it. Cardano’s native token ADA has joined this upward march, displaying impressive gains that have caught the eye of market watchers. The token’s recent price action suggests there could be significantly more room to run, with one technical analyst mapping out an ambitious target that would mark unprecedented territory for the asset.

Technical Analysis Points to $1.31 Target

A well-followed crypto analyst known as Ali_Chart has shared compelling technical analysis on social media platform X, highlighting ADA’s current trading pattern. The cryptocurrency touched an intraday peak of $0.74 during Thursday’s session before pushing through the $0.80 threshold on Friday, notching a solid 3.95% advance within a 24-hour window.

BREAKING NEWS:

CARDANO IS HEADED TO $1.60🙀🙀🙀

Crypto influencer @IvanOnTech said that #Cardano is on the brink of a major breakout, if $ADA pushes past its November high, it could skyrocket to $1.60 in no time.

Is $ADA about to explode? pic.twitter.com/NFHK351h81

— Mintern (@MinswapIntern) July 23, 2025

The analyst’s assessment suggests ADA could challenge the $1.31 resistance zone, though achieving this target hinges on one critical factor: the token needs to secure a daily closing price above $0.85. This level represents a key psychological and technical barrier that bulls must conquer to maintain upward momentum.

Current market data shows ADA changing hands at $0.81, while trading activity has surged dramatically. The 24-hour trading volume has jumped 63%, and the token’s market capitalization has expanded by 4%, reflecting growing investor interest. Whether today’s session concludes above the crucial $0.85 mark remains to be seen, but such a close would send a strong signal about the bulls’ determination to push higher.

Altcoin Season Indicators Show Progress

The broader context for ADA’s rally connects directly to Bitcoin’s recent performance and the evolving dynamics between the market leader and alternative cryptocurrencies. Market participants have been closely monitoring various metrics to gauge whether conditions are ripe for an authentic altcoin season to emerge.

Just seven days ago, approximately 30 alternative cryptocurrencies were managing to outpace Bitcoin’s returns. That number has now climbed to 50, according to CoinMarketCap data, marking notable progress toward the traditional threshold for declaring an official altcoin season. Market convention suggests that 70 altcoins need to outperform Bitcoin for the market to enter this coveted phase, meaning another 20 tokens must join the outperformance club to meet this criterion.