- Cardano’s descending triangle pattern suggests a breakout is imminent, with traders eyeing a potential 33% price move.
- Historical patterns hint at a bullish breakout, but ADA must clear key resistance levels to confirm a rally toward $10 or beyond.
- Market uncertainty persists, with support at $0.77-$0.78 being crucial for bullish momentum and potential long-term price surges.
According to analyst Ali’s analysis on X, Cardano ($ADA) is trading within a descending triangle pattern, hinting at a possible 33% price movement. The cryptocurrency currently hovers around $0.806, experiencing a 1.47% decline in its latest session. The support level stands firm at $0.77-$0.78, while the downward resistance line continues to pressure the price lower.
Descending Triangle Pressures Cardano’s Price
The price has formed lower highs, indicating weakening bullish momentum. Sellers dominate near resistance, making it difficult for the price to break above. If the price drops below the support, it could lead to further downside. Conversely, a breakout above resistance may signal a trend reversal.
Earlier in the timeframe, Cardano saw a sharp 33.19% decline, losing $0.39 in value. Although the price attempted a recovery, it continuously faced rejection at the resistance line. The compression within the triangle suggests a breakout is imminent, but market direction remains uncertain.
Moreover, historical data shows that descending triangles tend to break downward. Since ADA has been in a downtrend, the probability of a bearish breakout increases. However, price action near the lower boundary remains key. Buyers must defend support levels to sustain any bullish momentum. Volume data remains absent, making it challenging to confirm a potential breakout direction.
Potential Surge Toward $10 if Key Resistance Breaks
While short-term action remains uncertain, historical patterns suggest a bullish breakout could lead to a rally. If Cardano holds above $0.80 and clears the $1.20 resistance, a surge toward $10 remains possible.
Looking at past performance, ADA experienced a massive rally in 2020, surging 2,600.91% in 287 days. Before this move, the price corrected 56.20%, forming a base before breaking out. The current market cycle appears similar, with a prolonged accumulation phase before a potential explosive move.
Should the historical pattern repeat, ADA could surge toward $15.950, representing a 1,960.47% gain over a similar 287-day timeframe. Support and resistance levels from past cycles align with the present market structure, reinforcing the likelihood of a breakout.
