Cardano (ADA) is showing signs of an upcoming price rally. According to crypto analyst Ali (@ali_charts), ADA is positioning itself for a potential 24% price surge
Cardano (ADA) is showing signs of an upcoming price rally. According to crypto analyst Ali (@ali_charts), ADA is positioning itself for a potential 24% price surge, though the direction ultimately depends on key price levels.
Looking at the Cardano/USDT chart on the 3-hour timeframe, a bullish technical setup has emerged. The price action is being confined within a narrowing range between $0.83 and $0.74, forming what appears to be an ascending triangle pattern – typically a bullish signal in technical analysis.
Critical Price Levels and Fibonacci Analysis The current market structure reveals interesting alignments with key Fibonacci levels. The lower boundary of the trading range coincides with the 0.618 Fibonacci retracement at $0.7399. Also, the upper resistance aligns perfectly with the 1.0 Fibonacci extension at $0.8221. As noted by Ali, these technical confluences strengthen the significance of these price levels.
Potential Breakout Scenarios The market appears to be approaching a critical juncture. A decisive move above the $0.83 resistance could trigger a substantial rally, potentially pushing ADA toward higher Fibonacci extension targets. The most optimistic scenario points to a possible surge toward $1.02, indicating a 24% increase from current levels.
However, traders should be aware of a potential bearish scenario. A breakdown below the $0.74 support level would invalidate the bullish setup, potentially leading to a significant decline toward $0.6233, corresponding to the 0 Fibonacci level.
At present, ADA is encountering a crucial support level around $0.7621, situated near the 0.618 Fibonacci retracement. This price point has become a battleground between bulls and bears, with the market's next major move likely hinging on how price action develops at this level.
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