- Cardano is consolidating within a descending wedge pattern, with strong support at $0.8 and resistance at $1.3.
- A breakout above $1.3 could trigger a mid-term rally, while losing the $0.8 support may lead to further declines.
- Recent price action shows a bullish pullback confirming a breakout from the wedge, but ADA’s next move depends on breaking its current range.
Cardano is currently in a consolidation phase, fluctuating within a crucial price range that reflects market indecision. With strong support at lower levels, there’s a real possibility of a bullish rebound if a breakout occurs soon. Let’s dive into the technical details.
The Daily Chart: Strong Support, but Resistance Looms
Cardano recently faced heavy selling pressure near the $1.3 resistance, leading to a sharp rejection. This rejection highlighted the strength of sellers at this level, pushing the asset into a descending wedge pattern. Currently, ADA is moving within the $0.8–$1.3 range, signaling a phase of corrective pullback.
Key factors supporting the $0.8 level include:
- Alignment with the 100-day moving average.
- Acting as a pivotal level from past price action.
This support zone could provide the base for a bullish rally if ADA manages to break out of the descending wedge. A breakout would likely retest the $1.3 resistance, which could set the stage for a mid-term uptrend.
The 4-Hour Chart: Signs of a Breakout?
Zooming into the 4-hour timeframe, ADA recently bounced off the wedge’s lower boundary at $0.75 and surged above the wedge’s upper trendline. Following this breakout, the price retraced to the broken trendline, creating a bullish pullback that confirms the breakout’s validity.
Currently, ADA is moving within a critical range:
- Support is anchored at the 0.5 Fibonacci level ($0.8).
- Resistance lies at the $1.3 region.
For Cardano to establish its next trend, a valid breakout above this consolidation range is essential. A bullish breakout could trigger a sustained rally, while failing to hold the $0.8 support might lead to further declines.
What’s Next for Cardano?
Cardano is at a tipping point. The consolidation phase and wedge pattern suggest a breakout is on the horizon, but the direction remains uncertain. Traders should closely monitor the $0.8 support and $1.3 resistance zones, as they will likely determine ADA’s next big move.
A bullish breakout could pave the way for Cardano to reclaim higher levels, while losing support at $0.8 may signal a deeper correction. For now, ADA’s trajectory hangs in the balance—keep your eyes peeled for the next big move!
