Cardano’s BARR Bottom Setup Hints at 25% ADA Price Rally in April

Cardano (ADA) appears to be forming a classic Bump-and-Run Reversal Bottom (BARR) pattern, suggesting the cryptocurrency may prepare for a breakout in April.

ADA/USD Eyes 25% Rally in April

As of April 15, ADA/USD is trading near $0.647, consolidating above a key descending trendline that previously acted as resistance. This trendline forms part of the BARR structure—an established technical reversal setup traders use to identify potential bottoming formations in downtrending markets.

The BARR pattern consists of three key phases: the lead-in phase, the bump, and the run. Cardano began its lead-in phase in late March, when prices trended lower at a steady angle with relatively low volatility.

This was followed by a sharper and steeper drop—dubbed the bump phase—in early April, when ADA plunged below $0.52. This panic-driven decline likely exhausted most sellers, as volume spiked and sentiment reached capitulation levels.

Following this low, ADA staged a strong rebound, breaking above the descending trendline to confirm the run phase of the pattern. Notably, the rally also pushed the price above its 50-period exponential moving average (50-day EMA; the red wave), increasing the likelihood of a sustained upside continuation.

Cardano is in a throwback phase, retesting the broken trendline as new support. This price action aligns with classic BARR behavior, where a brief pullback often precedes the next leg up.

According to the structure of the BARR pattern, the expected upside target lies near $0.799, up around 25% from the current price levels.

Adding to the bullish sentiment, the Relative Strength Index (RSI) has recovered above the neutral 50 level, suggesting growing buying momentum. A daily close above the 200-period EMA near $0.674 would further confirm a bullish market structure shift.

Improving Macroeconomics Boosts Cardano’s Upside Potential

ADA’s potential recovery also reflects improving sentiment in the broader crypto market, as traders respond positively to easing trade tensions and renewed risk appetite across equities.

If market conditions remain favorable, Cardano’s BARR bottom pattern could serve as a launchpad for a sustained rally.

However, a failure to hold above the trendline could invalidate the setup, risking a retest of the $0.60–$0.58 support area.