Cardano (ADA) Technical Analysis
Analyzing the ADA chart on a daily time frame, we see that the price of the coin has formed a symmetrical triangle formation, being squeezed between a descending resistance line and a rising support line. The formation we see on the chart is almost at the end of it after almost 4-month consolidation.
The zone between the levels $0.9194 – $0.9442 stands as a key area as it is not only the horizontal resistance but is the upper border of the triangle pattern as well. The price of the coin can surge to the level $1.15 if the triangle formation breaks upward with huge momentum; however, we do not see a breakout confirmation yet.
ADA has been trading inside an ascending channel since January 2024 when we look at a broader timeframe. The current triangle pattern has shaped in the lower-mid border of the channel. We can say that the price has the potential to reach the level at $2 – upper border of the channel – in case of an upward breakout. Therefore, price closings above $0.9442 would be meaningful not only for the short term but also for reviving the medium-term bullish trend.
According to a bearish scenario, the price is likely to drop to the support range between the levels $0.75 – $0.78 in case of a triangle breakdown. This area has repeatedly worked as both support and resistance; however, the ascending channel pattern would break if the price drops below this region. Below this region, the price may move toward the lower border of the channel at first and then to the zone between the levels $0.45 – $0.50 in case of a deeper correction.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
