Cardano

bullish

Daily

<p>Cardano is navigating a pivotal price range, bounded by the $0.75 and $1.3 thresholds, with its recent price action underscoring a successful pullback to the previously breached $0.75 support.</p>
<p>The outcome of a breakout from this range will likely set the tone for its next significant market direction.</p>
<h2 id="technical-analysis">Technical Analysis</h2>
<p>By <a href="https://www.linkedin.com/in/shayan-navabi-522107248/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">Shayan</a></p>
<h3 id="the-daily-chart">The Daily Chart</h3>
<p>Cardano has recently encountered a rejection at the $1.3 resistance level, triggering heightened volatility and a descending retracement phase. As a result, the price settled at the $0.75 support zone, which coincides with a significant prior yearly swing high and is laden with demand and buying interest. This support has halted further downside momentum, keeping ADA confined within the $0.75-$1.3 range.</p>
<p>This consolidation phase suggests a build-up of market pressure, with the potential for a decisive breakout on either side. A bullish breakout above $1.3 would signal the initiation of a sustained uptrend, while a bearish breakdown below $0.75 could result in a significant liquidation cascade, pushing the price toward lower support levels.</p>
<p><a href="https://cryptopotato.com/wp-content/uploads/2024/12/ADA-D-1-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"></a></p>
<h3 id="the-4-hour-chart">The 4-Hour Chart</h3>
<p>On the shorter timeframe, Cardano’s price action has been shaped by a descending wedge pattern, a formation that often indicates a potential bullish breakout if the upper boundary is breached. Currently, the asset is hovering around the wedge’s lower boundary, near the $0.75 support zone, where increased buying interest is evident. This area is further reinforced by the critical 0.5 ($0.82)-0.618 ($0.7) Fibonacci retracement levels, solidifying it as a formidable barrier against further selling pressure.</p>
<p>In the mid-term, ADA is anticipated to continue consolidating within this wedge pattern while maintaining its position above these key Fibonacci levels. A bullish breakout from the wedge could pave the way for an advance toward the $1.3 resistance. Conversely, a bearish breakdown below the wedge’s lower boundary might trigger a deeper decline, with the $0.5 threshold emerging as the next significant support level.<a href="https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-scaled.jpg" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img class="aligncenter size-full wp-image-376543" src="https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-scaled.jpg" alt="" width="2560" height="1307" srcset="https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-scaled.jpg 2560w, https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-300x153.jpg 300w, https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-1024x523.jpg 1024w, https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-768x392.jpg 768w, https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-1536x784.jpg 1536w, https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-2048x1046.jpg 2048w, https://cryptopotato.com/wp-content/uploads/2024/12/ADA-4H-2-50x26.jpg 50w" sizes="(max-width: 2560px) 100vw, 2560px"></a></p>
<p>The post <a href="https://cryptopotato.com/cardano-price-analysis-ada-enters-consolidation-phase-after-16-weekly-drop/" rel="noopener noreferrer nofollow">Cardano Price Analysis: ADA Enters Consolidation Phase After 16% Weekly Drop</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.</p>

Cardano Price Analysis: ADA Enters Consolidation Phase After 16% Weekly Drop

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