The ADA needs to break that barrier to get to $1.30

Cardano is consolidating within a critical price range, indicating a phase of market indecision. However, a substantial support zone at lower levels offers the potential for a bullish bounce, especially if a breakout materializes in the coming sessions.

Technical Analysis

By Shayan

The daily chart

Cardano recently encountered significant selling pressure near the $1.3 resistance, which led to a strong rejection and reinforced the presence of strong sellers at this level. Since then, the asset has consolidated within a descending wedge pattern, bounded by the $0.8-$1.3 range.

Although it has not recovered the $1.3 level, Cardano benefits from a robust support at $0.8, which is aligned with the following:

The 100-day moving average. A key point of prior price action.

This suggests that the current price action is likely a corrective pullback to retest the $0.8 region. A break above the descending wedge could pave the way for a further rally, targeting the $1.3 resistance and potentially starting a mid-term uptrend.

The 4 hour chart

In the 4-hour period, ADA recently broke out of the lower boundary of the wedge ($0.75) and managed to break above the upper trend line of the wedge pattern. After this breakout, the price has moved back towards the broken trend line, forming a bullish retracement that confirms the validity of the breakout.

The price is now oscillating within a critical range, bounded by the 0.5 Fibonacci level ($0.8) as support and the $1.3 resistance region as the next major barrier.

A valid break above the current consolidation range is essential for Cardano to establish its next trend direction. A bullish breakout could lead to a sustained rally, while failure to hold the $0.8 support could lead to further declines.

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