Based on chart indicators, the Cardano price has just broken through a key resistance, sparking the promise of a potential uptrend. While the cryptocurrency is gearing up for a possible bullish rally, a crypto analyst has also shared the downside risks Cardano could experience if it fails to hold crucial support levels.
Cardano Price Breaks Falling Wedge Resistance, Signals Uptrend
The Cardano price appears to be on a significantly bullish trajectory, as a crypto analyst on TradingView identified as ‘MyCryptoParadise’ has shared an in-depth analysis of its recent price movements. According to the crypto expert, Cardano had just broken through the descending resistance in its Falling Wedge pattern.
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This move is typically seen as a bullish signal, as the Falling Wedge chart pattern is often associated with positive trend reversals. The Falling Wedge pattern is a unique technical indicator that occurs in an upward trend. It is characterized by two descending trend lines, with one representing highs and the other lows.
The crypto analyst has stated that Cardano’s price is approaching a distinctive level, which he calls a “demand zone.” If it can experience a strong rebound from this point, Cardano could start its anticipated upward trend at this crucial level.
The demand zone at $0.0313 acts as a vital support level where there’s likely to be buying interest. If Cardano can experience a bounce from this point, the cryptocurrency could rally and break out above the $0.417 resistance level, strengthening the analyst’s bullish scenario while hinting at higher resistance targets.
The market expert discloses that when Cardano breaks the $0.417 resistance, there could be a notable shift in its present market structure. Notably, Cardano has experienced slow growth and muted market performance over the past few years.
Due to the cryptocurrency’s low price and sluggish momentum, many investors have voiced out frustration previously, with some tagging ADA a dead coin and others alleging that Cardano is a ghost chain. However, recently, Cardano has been on a bullish trajectory, as its price has been experiencing significant gains over the past few weeks.
According to data from CoinmarketCap, the Cardano price is trading at $0.434, marking a 17.29% increase in the past 24 hours and a 27.84% rise over the past week. The…
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