Cardano (ADA) setup is gathering strength. Wave pattern shows series of Targets have been formed. Price is consolidating at bottom of declining wedge setup. High-probability reversal area with definite invalidation space. Shows strong likelihood of bullish break-out according to historical patterns If a successful breakout occurs, it will lead to a long term rally.
At the time of writing, ADA is trading at $0.6572, with a 24 hours trading volume of $660.09M, and a market capitalization of $23.2B. The ADA price over the last 24 hours and over the last week is slightly bearish but over the last month its price is significantly up by 11.44%, and showing signs for next upward momentum.
ADA at critical level: will bulls hold the line?
A prominent crypto analyst highlighted that ADA pullback in the market has now retraced to the level of equilibrium and is now trading just above the Previous Weekly Low (PWL). This level is a point of decision for both traders and investors. Price behavior at this level will probably dictate whether the current consolidation will resolve to the higher side or break lower.
If buyers can successfully defend this support level, there’s a strong case for a bullish continuation for ADA. The next immediate upside targets are the minor resistance at 0.7043 and the 0.7406 zone. Which is considered a weak high and a potential liquidity target. These levels are likely to attract bullish momentum. Particularly as market players try to take advantage of stop orders lying above previous highs.
Nevertheless, the bullish case depends on the validity of the PWL. A breakdown below here will negate the current setup and switch focus to bearish continuation. A sweep and rapid reversal up past 0.7406 might set up an attractive short-term scalp play, provided the breakout catches out overbought longs.
