Analyst Identifies Cardano Precursor Pointing to Potential Breakout, Reveals Next ADA Target
Cardano (ADA), the native token of the Cardano blockchain, has been consolidating within a tight range between $0.55 and $0.80 in recent weeks. Despite the lack of significant price action, traders and analysts remain bullish on the token’s long-term prospects, with some predicting a breakout to $1.70 in the near future.
What you'll learn 👉
Current Price Action
According to trader Ali, nothing has really changed for Cardano, as the token continues to trade within its established range. This consolidation period is seen as a precursor to a potential breakout, which could propel ADA to new heights.
altFINS, a leading provider of cryptocurrency market analysis, has identified a descending triangle pattern on the ADA price chart. This pattern typically precedes a breakout in the direction of the existing trend, which, in this case, appears to be an uptrend on the long-term basis.
Trend Analysis
While the short-term trend for ADA is currently a downtrend, the medium-term trend remains neutral, and the long-term trend is still an uptrend, characterized by higher highs and higher lows. This mixed trend outlook suggests that the token is poised for a potential breakout, which could see the price swing up to the $0.65–$0.68 range in the near term and possibly reach $0.80 thereafter.
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Show more +Momentum Indicators
The momentum indicators for ADA are currently mixed. The MACD (Moving Average Convergence Divergence) line is below the MACD signal line, indicating a bearish momentum. However, the RSI (Relative Strength Index) is hovering around 50, suggesting a neutral momentum.
Interestingly, the MACD histogram bars are rising, which could indicate that the momentum is nearing another upswing. This development further supports the bullish outlook for ADA in the near future.
Source: altFINS – Start using it today
Support and Resistance Levels
To manage risk effectively, traders should be aware of the key support and resistance levels for ADA. The nearest support zone is located at $0.57, followed by $0.46. On the upside, the nearest resistance zone is between $0.65 and $0.68, with the next major resistance level at $0.80.
Traders can set a stop-loss level at $0.55 to protect their positions in case of a sudden downward move. Additionally, setting price alerts at these key levels can help traders stay informed about potential breakout opportunities.
Cardano (ADA) is consolidating within its established range, setting up a potential breakout to $1.70. The token appears poised for a significant upward move in the near future, as suggested by the descending triangle pattern, long-term uptrend, and rising MACD histogram bars.
However, traders should remain vigilant and closely monitor the key support and resistance levels to manage risk effectively. By staying informed about the latest market developments and utilizing appropriate risk management strategies, investors can potentially capitalize on the upcoming breakout opportunity in the ADA market.
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