- Cardano price has renewed a triple bottom at the key long-term support of $0.27.
- The ADA price exhibits resistance at $0.9147, around 23.6 Fibonacci retracement of its historical high of $3.10.
- ADA Price above the 50-week EMA at $0.7115 preserves a bullish pattern on the weekly chart.
Cardano price is displaying a technical formation that is likely to drive its price up in weeks to come. The asset is touching one of the significant resistance zones and displaying a long-term pattern which in most cases is indicative to big price changes. Key levels are being eyed by traders, with the chart structure indicating a possible breakout towards the previous high of $1.32, which was last hit in December 2023.
Cardano Price Symmetrical Triangle and Triple Bottom Signal Potential Breakout
Cardano Price has developed a symmetrical triangle pattern on the weekly chart. A trend of forming higher lows and lower highs is developed when this occurs in terms of prices. The upper trendline plots highs in December 2023 and the lower ones lows back to August 2022. These two trendlines are converging implying that they are about to breach.
The pattern has formed with a formation of a triple bottom around $0.2700. This level was assessed three times: in January 2023, July 2023, and July 2024. A triple bottom is typically viewed as a resistance level and may mark a reversal when the market moves up in the future.
The neckline that ADA price broke above was the $0.8022 limit of March 2024. This advance above neckline support adds Fibonacci strength to this set up. EOS is trading at approximately $0.8682, and the next resistance is at the $0.9147 mark. This resistance corresponds with Fib 23.6 retracement.
Source: TradingView
The common trend of the volume in this kind of pattern is the decline as the pattern develops the triangle. A breakout with good volume would point at a bullish move. A break to the upside of the ADA over $0.9147 will target $1.23 and $1.32. The $1.32 level also coincides with highs of the triangle and December 2023.
In the case of a failure to resist the 50-week EMA at $0.7115, however, ADA could retrace towards the lower triangle support at around $0.60. The break of this support may subject the asset to a revisit of $0.2700. Traders are waiting to find out whether Cardano has a breakout, either upward or down.
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