Categories: Market

Analysis of two potential Cardano (ADA) outbreaks just before the big upgrade

As the Cardano market calmed down, ADA price began to form a symmetrical triangle. The end of the consolidation phase will lead to sharp swings, but the direction is still unclear.

This article discusses two possible potential outbreaks and specific conditions that must be met for each one. At the time of writing, ADA is valued at $ 2.43 and has a market cap of $ 77.3 billion.

Source: TradingView

After rebounding from $ 2.25, ADA formed a symmetrical triangle on the 4-hour chart. Now there are two options. If the pattern is acting as a continuation of the previous downtrend, the likelihood of a breakdown is high. And when it does, ADA will be back near the $ 2 mark – another 17% drop from current price.

The fall was confirmed when the price closed below the 200 SMA (green) and the September 8th low of $ 2.25.

On the other hand, the symmetrical triangle is more likely to act as a reversal pattern. Once there, a bullish breakout will bring the ADA to around $ 2.95-2.96. A closing price above $ 2.62 and the 50 SMA (yellow) increase this possibility.

However, it is important to note that there is a period of consolidation possible before an outbreak occurs. Volatility is also slowly easing as the major indices moved towards equilibrium.

The 4-hour RSI has refused to break above the midline and slid down as bears prevent the upward momentum from extending. This was confirmed by the development of the Directional Movement Index (DMI). -DI is moving parallel to the + DI line, showing that the downtrend is still active.

On a positive note, the inflows remain stable as the Chaikin Money Flow moves to a higher level. These cash flows can serve as a hedge against a prolonged market decline.

In short, the recent sell-off of crypto has caused turmoil in the ADA market. Although the symmetrical triangle pattern has appeared on the charts, the direction of the breakout is still unclear.

The indicators are trending downward at the time of writing. However, both directions have valid arguments. Therefore, it would be safer to wait for ADA to hit the above levels before going long or short.

You can see the ADA prices here.

We invite you to join our Telegram for faster news: https://t.me/coincunews

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

Annie

According to Ambcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

CoinX

Recent Posts

Best New Meme Coins to Join for 2025: BTFD Coin Leads, Popcat Keeps It Purr-fect, and Non-Playable Coin Hits Gamers Hard

Discover the Best New Meme Coins to Join for 2025. BTFD Coin's price rollback offers…

28 minutes ago

Solana memecoins crash while DTX Exchange hits 100,000 TPS on layer-1 blockchain

Discover how DTX Exchange's historic achievement of 100,000 transactions per second on a layer-1 blockchain…

1 hour ago

Strategic Bitcoin Reserve Expected to Cut 35% of US National Debt by 2049

VanEck suggests the U.S. could reduce its national debt by 35% by 2050 through a…

1 hour ago

The New Lead of Presidential Crypto Council Appointed by Trump Is Bo Hines

President-elect Donald Trump named Bo Hines as the executive director of the presidential crypto council.

2 hours ago

Best New Meme Coins with 1000X Potential: BTFD Coin’s Hot BIG50 Discount As Baby Doge Coin, Dogs Takes Gaming to the Next Level

Explore the best new meme coins with 1000X potential. Learn how BTFD Coin leads with…

3 hours ago

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

4 hours ago

This website uses cookies.