In simpler terms, right now, Cardano‘s price is holding steady in a crucial area, suggesting a period of uncertainty in the market. But if it falls, there’s a strong base of support below that could lead to an upward trend, especially if a breakout happens soon.
Technical Analysis
By Shayan
The Daily Chart
Recently, Cardano faced intense selling forces around the $1.3 resistance level, leading to a steep rejection and underscoring the presence of robust sellers at that point. Since then, the asset has been holding steady within a contracting trend known as a descending wedge, with its boundaries set between $0.8 and $1.3.
Even though Cardano didn’t manage to reach the $1.3 mark again, it has a strong foundation of support at approximately $0.8. This is in line with…
- The 100-day moving average.
- A key pivot point from prior price action.
As a researcher, I find it plausible that the current market movement is a corrective pullback, aiming to revisit the $0.8 zone. If we observe a breakout above the forming descending wedge, it might trigger a new surge towards the $1.3 resistance level. This potential breakthrough could initiate a mid-term uptrend.
The 4-Hour Chart
Over the past 4 hours, ADA has climbed from the lower edge ($0.75) of its wedge and exceeded the upper trendline of the wedge pattern. This breakout was followed by a price drop towards the now-broken trendline, creating a bullish correction that reinforces the authenticity of the breakout.
Currently, the price is fluctuating between a significant zone. On one side, it’s being held up by the 0.5 Fibonacci level, which stands at approximately $0.8, acting as a base of support. On the other hand, the $1.3 area serves as the next significant resistance region, marking the primary obstacle for further price increase.
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.
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2025-01-12 20:54