Cardano (ADA) has been attracting interest after breaking out of a Falling Wedge pattern, a move that suggests potential bullish momentum. This movement, as highlighted by crypto analyst Alex Clay, brings the price closer to key resistance levels that could push ADA to new heights if sustained.
In a tweet shared by Clay, he pointed out that ADA is approaching a crucial resistance confluence formed by three EMAs and a historically strong resistance zone. He further suggests that a rally is possible if these resistance levels are successfully breached.
#ADA/USDT UpdateFalling Wedge pattern reformed a bit but still intactCurrently we are breaking out of the one I am looking for $ADA to flip above the strong resistance confluence of EMA 50 + EMA 100 + EMA 200 + Key Zone and rally https://t.co/qW4jzktvTz pic.twitter.com/R5d5hK5OWY
— Alex Clay (@cryptclay) September 25, 2024
ADA Pattern Signals Bullish Potential
One of the critical patterns identified in Cardano’s recent price action is the Falling Wedge. This formation indicates a bullish reversal after a prolonged downtrend. According to Clay, ADA has broken out of this pattern, which could trigger a rally if it sustains momentum.
The breakout is significant because it signals a potential shift in market sentiment. With the pattern intact and the price pushing upward, watching to see if ADA can build on this momentum will be crucial. Flipping key resistance levels could lead to further growth.
EMA Confluence Creates Strong Resistance
Clay also pointed out the convergence of three major EMAs – the 50, 100, and 200-day averages – that currently form a strong resistance level. Moving above these EMAs is critical for confirming a bullish trend.
The chart shared by Clay shows ADA attempting to break through this confluence, which could trigger a significant price rally if successful. The importance of these EMAs lies in their ability to gauge market trends.
Breaking above them would indicate a strong upward shift in ADA’s price action, encouraging bullish sentiment among traders. If ADA maintains momentum, it may continue to climb toward higher price targets.
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Key Resistance Zone and Fibonacci Levels
Aside from the EMA resistance, there is also a key horizontal zone that has acted as resistance in the past. Cardano’s ability to break through this zone is vital for its price growth. Clay’s chart highlights Fibonacci extension levels at $0.7105 and $1.0585 as potential targets if ADA continues its upward trajectory.
These Fibonacci levels serve as markers for traders looking to assess potential resistance points during the rally. A breakout beyond these levels could further strengthen ADA’s position in the market, pushing it toward the $1.00 mark.
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The post Cardano’s ADA Price Breaks Key Pattern, Aiming for Highs Beyond $1.00 appeared first on CaptainAltcoin.
