Cardano remains entrenched in a consolidation phase within a triangle pattern, with critical support at the 100-day MA.

The ongoing sideways action suggests that the next phase could be a bullish breakout, contingent on the market maintaining current support levels.

Technical Analysis

By Shayan

The Daily Chart

ADA has been consolidating inside a triangle pattern, with the recent price rejection at the upper boundary halting the previous bullish momentum. This rejection led to a decline toward the $0.85 level, which aligns with the 100-day moving average. This price range holds significance as it serves as a major support zone.

Despite this setback, the expectation is for the asset to maintain its bullish consolidation toward the triangle’s upper boundary at $1.2. A successful breakout above this level could signal a continuation of the upward trend, pushing ADA to reclaim the $1.2 mark. Conversely, if the market fails to maintain support at $0.85, a bearish breakdown could occur, potentially delaying a recovery.

The 4-Hour Chart

On the 4-hour timeframe, Cardano successfully broke above a descending wedge pattern, only to face rejection at the $1.2 resistance level. This failure led to a consolidation phase within an expanding wedge pattern, with price fluctuations occurring above the 0.5-0.618 Fibonacci levels.

Currently, ADA is hovering near the lower boundary of this wedge, with a slight bullish rebound emerging. If the buying activity continues to grow, the price could surge back toward the critical $1.2 resistance.

Nevertheless, an ultimate breakout from the $0.85-$1.2 range will determine the next major move for Cardano. Given the strong support zone, a bullish breakout is expected, with the potential for the price to continue its upward trend.

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Cryptocurrency charts by TradingView.