Cardano's ascending triangle pattern hints at bullish potential, but failure to hold $1.10 could drive prices to $0.88.
RSI at 66.04 indicates strong momentum, yet nearing overbought levels suggests possible consolidation or minor retracement.
High volume of 57.45M reflects increased buying interest, but $1.20 remains a critical resistance to watch for breakout confirmation.
According to analyst Ali, Cardano (ADA) could be at risk of a price correction, with a potential 20% drop if certain levels are breached. Currently trading at $1.1257, the cryptocurrency has faced resistance at $1.15, a key level that has been tested repeatedly without a decisive breakthrough. Ali notes that a close below $1.10 could indicate a bearish shift, while a drop under $1.03 may confirm a breakdown toward $0.88.
Resistance and Support
Cardano's price behavior has been influenced by a distinct ascending triangle pattern, which features a rising trendline connecting higher lows and horizontal resistance around $1.14–$1.15. Historically, this pattern has indicated potential bullish movement, dependent on the price breaking and holding above the resistance level.
Source: Ali
Support levels, however, are critical. The ascending trendline has been a key support mechanism, while the next significant support lies near $1.03–$1.04. Breaching these levels could negate any bullish momentum, introducing risks of further declines. Presently, the price remains above the trendline, but the close proximity to key levels keeps the market cautious.
Volume and Indicators
Recent price increases, as reflected in another ADA/USDT analysis on a three-hour timeframe, emphasize heightened market activity. Trading at $1.1968, ADA has shown a 5.63% increase, accompanied by high volume of 57.45M. This indicates strong participation from buyers, reinforcing bullish sentiment.
Source: TradingView
The Relative Strength Index (RSI) sits at 66.04, approaching overbought levels but still within a healthy range. The Moving Average Convergence Divergence (MACD) reflects continued upward momentum, with the MACD line remaining above the signal line.
Together, these indicators suggest Cardano may continue its uptrend if resistance levels are breached. However, the RSI nearing overbought territory could introduce short-term consolidation risks, especially if resistance at $1.20 proves impossible.