A recent technical analysis by crypto analyst MelikaTrader94 on TradingView has revealed that the Cardano (ADA) price has broken down from an Ascending Channel pattern. This breakdown has opened up two potential scenarios for ADA’s future price action, with key support and resistance levels now in focus.
The Ascending Channel pattern, which is typically considered a bullish continuation signal, had been guiding Cardano’s price momentum for some time. However, the recent breakdown suggests a possible shift in market sentiment and could lead to either a bullish surge or a bearish decline.
In the bullish scenario, if ADA can reclaim the key support level at $0.7765, the analyst predicts a potential rally towards $0.95 to $1.00, signaling the start of a strong uptrend. On the other hand, the bearish scenario suggests that ADA could face further downside, possibly declining towards the 0.4836 and 0.2910 Fibonacci levels if it fails to hold current support levels.
Investors and traders should closely monitor ADA’s price action around the critical $0.63 level, as a break below this support could confirm the bearish outlook. However, if ADA manages to bounce back and break above the $0.7765 to $0.80 resistance zone, it could indicate a potential bullish reversal.
The breakdown from the Ascending Channel pattern has placed Cardano at a crucial juncture, with the upcoming price action likely to determine the direction of its mid-term trend. As the crypto market remains volatile, it is essential for market participants to exercise caution and make informed decisions based on thorough technical analysis and risk management strategies.
Tags: Cardano, ADA, Technical Analysis, Crypto Market, Ascending Channel
Source: Tradingview.com