The crypto market is watching Cardano (ADA) as technical analyst ZAYK Charts highlights a potential bullish setup in the token’s chart. ZAYK Charts, in a tweet, pointed out that ADA is trading within a falling wedge pattern on the daily chart.
This setup suggests the potential for an upward breakout, with ZAYK projecting a 60-70% rally if ADA breaks through its resistance level.
ADA’s Falling Wedge Pattern on the Daily Chart
Cardano’s price pattern shows a classic falling wedge, marked by two converging downward trendlines on the daily timeframe. From early 2024, ADA has bounced within these lines, creating lower highs and lows.
$ADA Still Moving inside the Falling Wedge ,In 1D TimeframeWhen a Breakout Happen's,Expecting 60-70% Bullish Wave#ADA #ADAUSDT #Crypto pic.twitter.com/ZV600ZzN6C
— ZAYK Charts (@ZAYKCharts) November 1, 2024
The falling wedge is a reversal pattern, that signals the possibility of an upward breakout once ADA surpasses the upper trendline. This technical setup has is key as it implies that Cardano could be primed for a price surge if buying momentum increases.
Analyst ZAYK Charts suggests that the breakout could lead to a 60-70% price rally, bringing ADA’s price close to $0.61. This target is based on the height of the wedge, projected upwards from the anticipated breakout level.
Support and Resistance Levels
Throughout its movement within the wedge, ADA has encountered support along the lower trendline, where buyers have consistently stepped in, preventing further declines. Each bounce from this line reflects sustained buying interest, establishing it as a strong support level.
On the other hand, the upper trendline has acted as a resistance level, with the price testing this boundary multiple times without breaking through. These repeated tests indicate a buildup in momentum, which often precedes a breakout in price.
ZAYK’s analysis suggests that a successful breakout from the upper resistance line could result in a bullish continuation, as the pattern reaches its apex.
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Potential Breakout Target
The breakout target for ADA price, according to ZAYK’s projection, lies around $0.61, representing a potential 70% increase from its current price of approximately $0.36. Besides, this target aligns with the technical measurement of the falling wedge pattern’s height at its widest point. Hence, it provides a bullish target for traders awaiting confirmation of the breakout.
The green box on the chart marks this potential target zone, reinforcing the idea of a price movement if ADA breaks the upper trendline. Such a breakout could encourage bullish sentiment, drawing in more buyers as Cardano approaches its target.
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