Cardano breaks falling wedge formation after weeks of constrained price action
Analysts identify $0.86 and $0.93-$0.95 as key resistance levels ahead
CryptoGnojek targets $2.00-$2.50 range following technical breakout confirmation
Cardano has escaped a multi-week falling wedge pattern that had restricted price movement, suggesting potential upward direction shift according to analyst My Crypto Paradise.
The breakout occurs as ADA trades at $0.8021, posting a 7.9% daily gain and extending weekly increases to 11% with monthly growth reaching 34.6%.
The falling wedge formation created downward pressure for several weeks before the recent breakout attempt. Sustained movement above pattern resistance could indicate renewed buyer interest, though analysts warn that false breakouts can trap late entrants without strong follow-through volume.
Technical Indicators Support Bullish Momentum Shift
Key resistance zones lie ahead at $0.8600 for initial testing, followed by the critical $0.9300-$0.9500 range that has historically provided strong opposition. This upper zone may attract profit-taking from earlier buyers while offering potential short-selling opportunities for bearish traders.
The Relative Strength Index has turned upward, indicating improving momentum and increased buyer participation in recent sessions. However, analysts emphasize careful risk management given potential price rejection at higher resistance levels.
Technical analysis suggests the breakout could gain traction if ADA maintains support above pattern boundaries. Volume confirmation and sustained buying pressure will determine whether the move develops into a sustained rally or fails at resistance.
Fibonacci Targets Point to Extended Rally Potential
CryptoGnojek has confirmed the falling wedge breakout and established targets in the $2.00-$2.50 range for the current rally phase. The analyst identified Fibonacci retracement levels providing roadmap guidance for potential price progression.
Immediate resistance sits at $0.917, followed by $1.35 and $1.699 as intermediate hurdles before reaching primary targets. The 0.618 Fibonacci level at $2.049 serves as the main objective, with upper resistance extending to $2.546.
Extended targets include $3.180 for continued bullish scenarios, while full extension reaches $5.010 for long-term optimistic projections. These levels depend on ADA’s ability to maintain support and clear near-term resistance barriers.
Ali Martinez has previously identified Cardano targets at $3.09, $4.19, and potentially $6.25 based on pattern repetition analysis. The analyst compared current price action to ADA’s 2020-2021 bull run, noting structural similarities despite slower development pace.