Cardano continues to consolidate within a crucial price range, indicating market indecision. However, a support zone at lower levels offers a chance for growth after a breakout.
Technical Analysis
This section examines the current Cardano price situation within the context of technical analysis. Cardano is fluctuating within a price range with the potential for growth under the right conditions.
The Daily Chart
Cardano recently faced significant selling pressure at $1.3, resulting in a rejection and reinforcing the presence of strong sellers there. The asset consolidates within a descending wedge, bounded by the $0.8-$1.3 range. Strong support at $0.8 aligns with the 100-day moving average and a key pivot point. A breakout could initiate a fresh rally targeting the $1.3 resistance, potentially beginning 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 broke above the wedge pattern's upper trendline. After this breakout, the price retraced towards the broken trendline, forming a bullish pullback that confirms the breakout's validity. The price now oscillates within a critical range, with support at the 0.5 Fibonacci level ($0.8) and resistance around $1.3. A valid breakout is crucial for establishing Cardano’s next trend direction.
Cardano is in a phase of indecision, but successful support holding and potential breakout suggest significant price growth possibility.
