Cardano’s mixed signals have traders watching for its next move. While some chart patterns hint at downside risk, the overall market structure remains encouraging. ADA’s movement appears to be riding on Bitcoin’s momentum, though traders are staying alert to bullish and bearish scenarios before making their moves.
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Cardano Bearish Pattern Raises Concerns Amid Bullish Signals
The YouTube channel The Mango Way addressed a key concern regarding ADA’s price chart—a potential double-top formation. The analyst explained that if this bearish pattern plays out, ADA could see a drop, possibly as low as $0.52. However, despite this possibility, the expert remained optimistic.
“If you had to ask me, gun to my head, am I bullish or bearish on Cardano? I am still bullish,” the analyst stated. Even with a recent 29% pullback, past trades remain profitable, reinforcing confidence in ADA’s upward momentum.
Cardano’s price structure suggests resilience, with a key support level at $0.81 acting as a stronghold. The analyst pointed out that ADA has been holding above this level, maintaining its bullish trend. If the current bull flag pattern continues, the next upside target is $3.80, potentially surpassing previous all-time highs. At press time, Cardano trades just below $1 at $0.947.
“This is pointing to Cardano getting all the way back up to its previous all-time high at around $3,” the analyst noted. The Dynamic Indicator, a tool for identifying support and resistance zones, also supports a bullish outlook.
Historically, when ADA reclaimed this indicator as support, it triggered massive rallies, with past gains reaching 261% and 2,973%. “Every time we reclaimed this support, price rallied massively,” the analyst emphasized.
BTC’s Role in ADA’s Trajectory
Like many altcoins, Cardano’s value tends to follow Bitcoin’s lead. With Bitcoin maintaining its upward momentum, ADA appears well-positioned for potential gains soon.
“Bitcoin dictates the game here… all Bull Run systems are still intact,” the expert explained, reinforcing the idea that ADA’s growth aligns with Bitcoin’s overall trend.
For traders looking to enter positions, the ideal buy zone is between $0.85 and $0.89, according to the analyst. A break below key support levels would signal an exit to minimize losses. The speaker advised against emotional trading, encouraging investors to rely on systematic strategies.
“Do not get spooked out, and most definitely do not jump the gun on exiting positions,” the analyst cautioned. Despite short-term bearish concerns, ADA maintains a strong long-term outlook. If current bullish patterns hold, Cardano could be on track for major gains in the coming months.
Read also: XRP Price Prediction for January 31
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