Cardano (ADA) has finally broken free from its bearish trend, with technical analysis suggesting a potential rally toward the $0.72 level. After successfully defending the critical $0.65 support level, ADA’s price action shows promising signs of a trend reversal on multiple timeframes.
Technical Breakout Confirms Bullish Structure
According to renowned crypto analyst TehThomas on TradingView, ADA has broken out of a descending channel formation that had confined prices throughout late March. The 4-hour chart shows a clear breach of the bearish pattern, suggesting accumulation at lower levels may be complete.
Key technical highlights include:
- Breakout from descending channel pattern
- Strong volume confirmation on the 4H timeframe
- RSI showing bullish divergence
- Multiple timeframe support at $0.65
Golden Pocket Target: Why $0.72 Matters
The next major resistance zone combines two powerful technical indicators:
- The Golden Pocket (0.618-0.65 Fibonacci retracement)
- A significant Fair Value Gap (FVG) from March’s decline
Market Structure Analysis
The convergence of technical factors at $0.72 creates a high-probability target zone. Traders should watch for:
- Volume profile showing significant liquidity clusters
- Potential consolidation before attempting the breakout
- Stop-loss positioning below $0.65 support
FAQ: Cardano’s Technical Outlook
What is the next major resistance for Cardano?
The immediate resistance lies at $0.72, marked by both the Golden Pocket and a Fair Value Gap.
Is the bearish trend officially over?
While the breakout is significant, confirmation above $0.72 would provide stronger evidence of trend reversal.
What support levels should traders watch?
The critical support remains at $0.65, with secondary support at $0.63.
Conclusion: Risk Management Crucial
While technical indicators suggest bullish momentum, traders should maintain strict risk management given the volatile nature of crypto markets. Position sizing and clear stop-losses remain essential for trading this setup effectively.