Cardano (ADA) is showing signs of recovery after a recent drop. The asset is trading at around $0.6446 and has a potential target of $0.73.
Ascending Triangle Formation Supports Cardano Bullish Setup
The ascending triangle pattern seen on ADA's chart indicates price compression between steady support and horizontal resistance. This structure often precedes breakouts when accompanied by rising momentum and volume. According to GemXBT, pressure is building within the narrowing range, making a breakout likely if buyers continue stepping in.
Breakout Target at $0.73 Matches Previous Price Structure
A breakout above the $0.66 level could lead ADA toward the $0.73 target. This level aligns with a prior consolidation zone and serves as a logical resistance point in the current trend. ADA would need continued buying interest and trading volume to reach and hold that level.
Trading Setup and Potential Risks
A pullback remains a possibility before a breakout occurs. According to an observation by TraderTardigrade, a retracement to $0.6422 could offer a favorable long entry. This area coincides with the previous swing low and near-term support. Traders may look for confirmation signals around this level before opening positions.
Cardano (ADA) exhibits promising technical factors, suggesting potential for future growth. Monitoring volume and support levels will be key to enabling the expected breakout.
