Analyst and trader @ZAYKCharts has shared an optimistic outlook for Cardano (ADA). He pointed to a bullish breakout in a Falling Wedge pattern on the daily chart. 

Per the trader, ADA’s breakout suggests a potential upward price movement of 60-70%, which could push the token’s price higher. His analysis also highlights an increase in buying momentum following the breakout, offering ADA holders a positive short-term outlook.

$ADA Faling Wedge Breakout is Done in 1D TimeframeExpecting 60-70% Bullish Wave#ADA #ADAUSDT #Crypto pic.twitter.com/RD0bYw3i5R

— ZAYK Charts (@ZAYKCharts) November 7, 2024

In the shared analysis, ZAYKCharts highlights a Falling Wedge pattern, typically seen as a bullish signal in technical analysis. A consolidation phase is indicated by the convergence of two descending trendlines in this pattern. ADA’s downtrend came to an end as it broke over the upper trendline, indicating a turnaround to bullish territory.

A spike in purchasing pressure coincided with the breakout, enhancing the likelihood of a robust bullish trend. This trend is frequently interpreted by traders and experts as a sign of heightened investor interest, which may further drive the price of ADA higher.

ADA Price Prediction

Based on the wedge’s height, the projection for ADA’s potential price increase aligns with the target set by ZAYKCharts, suggesting a rally to around $0.60–$0.65. This range represents a 60-70% rise from the breakout point, consistent with the analyst’s expectations.

This target also aligns with key historical resistance levels, where ADA’s price previously encountered selling pressure. Should the buying momentum continue, ADA could reach these levels in the short term, although profit-taking at the target range could slow down further price gains.

Read also: Why Is Lido DAO Pumping? Expert Outlines LDO Price Path to $3

Support and Resistance Levels at Play

The area around $0.35–$0.37, where the breakout initially occurred, now acts as a new support zone. This range had previously functioned as resistance, and its role reversal could provide a strong base for ADA’s price as it moves upward.

The resistance at $0.60, however, may be challenging to surpass without sustained buying pressure. If ADA approaches this range, it could attract profit-taking, potentially leading to a pause in the uptrend unless there is strong market demand to support further gains.

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