Outside Source
Cardano is consolidating within a critical price range, signaling a phase of market indecision. However, a substantial support zone at lower levels offers the potential for a bullish rebound, especially if a breakout materializes in the coming sessions.
Technical Analysis
By Shayan
The Daily Chart
Cardano recently encountered significant selling pressure near the $1.3 resistance, resulting in a sharp rejection and reinforcing the presence of strong sellers at this level. The asset has since consolidated within a descending wedge pattern, bounded by the $0.8-$1.3 range.
Despite the failure to reclaim the $1.3 level, Cardano benefits from robust support at $0.8, which aligns with the following:
- The 100-day moving average.
- A key pivot point from prior price action.
This suggests that the current price action is likely a corrective pullback to retest the $0.8 region. A breakout above the descending wedge could pave the way for a fresh rally, targeting the $1.3 resistance and potentially initiating a mid-term uptrend.
The 4-Hour Chart
In the 4-hour timeframe, ADA recently surged from the wedge’s lower boundary ($0.75) and managed to break above the upper trendline of the wedge pattern. Following this breakout, the price has retraced toward the broken trendline, forming a bullish pullback that confirms the breakout’s validity.
The price is now oscillating within a critical range, bounded by the 0.5 Fibonacci level ($0.8) as support and the $1.3 resistance region as the next major barrier.
A valid breakout above the current consolidation range is essential for Cardano to establish its next trend direction. A bullish breakout could lead to a sustained surge, while failing to hold the $0.8 support may result in further declines.
This article first appeared at CryptoPotato
