- ADA price breaks above wedge resistance at $0.83, signaling a potential trend reversal with strong volume support.
- Price reclaims 0.786 Fib level at $0.8268, increasing odds of a rally toward $0.8648 and beyond.
- Inverse head-and-shoulders and bullish flag patterns support a potential move to $1.074.
ADA price is showing strong signs of a bullish reversal, capturing traders’ attention with multiple technical indicators aligning for a potential breakout. A falling wedge pattern, reclaimed Fibonacci levels, and bullish continuation formations all point to upward momentum. With price action nearing a critical resistance zone and supported by long-term moving averages, ADA appears poised for a significant move that could mark the start of a new uptrend.
ADA Price Flashes Bullish Patterns
The 4-hour chart of ADA price indicates that the technical position is quite bullish, and it may be possible that a trend reversal is in effect. ADA price has been consolidating in a falling wedge pattern since mid-August, which generally indicates a reversal of downward trend. Now the price is trying to break out of the upper wedge resistance at around $0.83 with rising volume. Breaking out and closing higher than this in one day would indicate the termination of the recent downtrend and the beginning of additional gains.
To further contribute to the bullish sentiment, ADA price has now regained the $0.786 Fibonacci retracement at $0.8268 which is commonly considered as the main reversal point. Any further rise is an indication of a changed attitude and the likelihood of further rise is high. The following resistance levels are at $0.618 at approximately $0.8648 and the 0.5 level at $0.8924. With the current momentum, ADA has a chance to move to the 11% level of $0.9210 (0.382 level).
This is supported by other technical indicators. ADA is significantly above their 100 days Exponentially Moving Average (EMA), which has historically been a robust dynamic support. Moreover, Murrey Math Lines depict that ADA is bouncing off of major support/resistance areas with the recent pullback creating a bullish flag; a continuation pattern that suggests the potential of an upward extension. ADA has been forming an inverted head-and-shoulders pattern as well, a typical bullish reversal type.
Bullish momentum will drive ADA up to $1.0199, and possibly to $1.074, which is a 30% increase over current positions. The positive scenario will however fail on a convincing break below $0.8268 and additional downside would occur should ADA drop to below the Murrey Math pivot support of $0.684.
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