The post Why is Cardano’s ADA on the Brink of a Bullish Breakout? appeared on BitcoinEthereumNews.com.
Cardano’s native token, ADA, shows strong indications of a possible bullish breakout in the near term, as indicated by a detailed technical analysis of its market structure. The chart highlights a well-defined Elliott Wave pattern, beginning with a five-wave impulse (1-5) followed by an ABC corrective phase. The correction bottomed out near the $0.76 level, forming a robust support base. From this point, ADA has initiated a new bullish wave cycle, with Wave 1 rallying by approximately 51% to $1.15 and Wave 2 retracing to the $0.87 region, aligning closely with the 0.236 Fibonacci retracement level at $0.89497. The ADA cryptocurrency forms Wave 3 at press time, hinting at an upward price movement. Another vital feature in the Cardano market structure analysis is the formation of a bullish pennant, a pattern formed by converging trendlines that occurs when a consolidation phase follows a sharp price rise. Typically, once the price breaks out of the pennant formation, this pattern hints at a continuation of the previous uptrend. With the ADA cryptocurrency nearing the apex of the pennant triangle, a breakout appears imminent in the near term. Moreover, the prevailing trend and strong support structure from the Elliott wave and pennant pattern favor a bullish resolution. However, the possibility of a bearish breakdown below the $0.8947 support zone remains risky. Cardano (ADA) Key Resistance and Support Levels According to Cardano’s market structure, the token has a vital support zone marked in green around the $0.90 and $0.82 range, where buyers have consistently stepped in to avoid further downside. This area corresponds with the 0.236 Fibonacci retracement level, reinforcing its importance as a strong floor for the token’s price. On the upside, the resistance zone around $1.24 and $1.32 zone, which coincides with a 1.0 Fibonacci extension, has been identified as a key…