Cardano Price Prediction: Analyst Sounds Alarm Of Break Through Key Resistance, Why A Rally Could Follow

Share This Post

Based on chart indicators, the Cardano price has just broken through a key resistance, sparking the promise of a potential uptrend. While the cryptocurrency is gearing up for a possible bullish rally, a crypto analyst has also shared the downside risks Cardano could experience if it fails to hold crucial support levels

Cardano Price Breaks Falling Wedge Resistance, Signals Uptrend

The Cardano price appears to be on a significantly bullish trajectory, as a crypto analyst on TradingView identified as ‘MyCryptoParadise’ has shared an in-depth analysis of its recent price movements. According to the crypto expert, Cardano had just broken through the descending resistance in its Falling Wedge pattern. 

This move is typically seen as a bullish signal, as the Falling Wedge chart pattern is often associated with positive trend reversals. The Falling Wedge pattern is a unique technical indicator that occurs in an upward trend. It is characterized by two descending trend lines, with one representing highs and the other lows.

The crypto analyst has stated that Cardano’s price is approaching a distinctive level, which he calls a “demand zone.” If it can experience a strong rebound from this point, Cardano could start its anticipated upward trend at this crucial level. 

The demand zone at $0.0313 acts as a vital support level where there’s likely to be buying interest. If Cardano can experience a bounce from this point, the cryptocurrency could rally and break out above the $0.417 resistance level, strengthening the analyst’s bullish scenario while hinting at higher resistance targets. 

The market expert discloses that when Cardano breaks the $0.417 resistance, there could be a notable shift in its present market structure. Notably, Cardano has experienced slow growth and muted market performance over the past few years.

Due to the cryptocurrency’s low price and sluggish momentum, many investors have voiced out frustration previously, with some tagging ADA a dead coin and others alleging that Cardano is a ghost chain. However, recently, Cardano has been on a bullish trajectory, as its price has been experiencing significant gains over the past few weeks.

According to data from CoinmarketCap, the Cardano price is trading at $0.434, marking a 17.29% increase in the past 24 hours and a 27.84% rise over the past week. The cryptocurrency’s daily trading volume is also up by more than 65%, underscoring investors renewed interest and confidence in the altcoin. 

Potential Risks If ADA Fails To Hold Key Support Levels

TheCryptoParadise has revealed on TradingView the downside risks that could occur if Cardano fails to hold the aforementioned critical support levels at around $0.313. The analyst emphasized that if the Cardano price fails to hold above the $0.313 level, it might experience a steep decline toward the critical support zone between $0.274 and $0.290.

The analyst has disclosed that this support zone is an important price floor where buyers could step in to prevent further price decreases. He also highlighted that ADA will need to reclaim the $0.313 support to maintain a bullish outlook. However, if it closes a day below $0.274, it would most likely invalidate this bullish scenario, increasing the risk of further price declines and possibly even setting a new low. 

Cardano price chart from Tradingview.com

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Ethereum To Outperform Bitcoin, Fund Managers Set $8,000 Target

The strong performance of Ethereum in recent days has caught the attention of experts In several posts on X, prominent fund managers and industry leaders have projected a bullish outlook for Ethereum

SEC Commissioner Backs Trump’s Vision to End ‘War on Crypto’

The SEC’s “war on crypto” may be winding down as a commissioner signals support for reducing enforcement against crypto firms, stressing the need for clear guidelines War on Crypto: SEC

Grayscale Unveils Plan to Transform Bitcoin, Ethereum Funds With Split Strategy

Grayscale Investments has announced plans for reverse share splits for its Grayscale Bitcoin Mini Trust ETF (Ticker: BTC) and Grayscale Ethereum Mini Trust ETF (Ticker: ETH) Effective at 5:00 pm ET

Crypto Comes To Detroit: Residents Will Soon Pay Taxes With Digital Assets

By accepting crypto for taxes and other local municipal payments, Detroit would become the largest city in the United States to accept crypto for payments The program is scheduled to start in the

SEC punts decision on options trading for spot Ethereum ETFs

The US Securities and Exchange Commission (SEC) has delayed its decision on approving options trading on Ethereum (ETH) exchange-traded funds (ETFs) on the New York Stock Exchange (NYSE), according

PEPE Slips Into Correction: Here Are Key Levels To Watch For A Rebound

After a strong upward momentum, PEPE is showing signs of fatigue, slipping into a correctional phase, with traders speculating on what might come next As the token retraces from recent highs,