Top Analyst Spots the Key Support Level To Trigger Cardano (ADA) Next Rally

Cardano (ADA) is currently at a critical juncture in the market. Prominent crypto analyst Ali Martinez (@ali_charts) has shown that the lower time frames reveal a descending triangle pattern, hinting at potential breakouts and support levels that could dictate ADA’s short-term trajectory.

Cardano’s (ADA) Journey

Launched in 2017 by Charles Hoskinson, one of the co-founders of Ethereum, Cardano has established itself as a leading blockchain platform with aspirations to become a “third-generation” blockchain.

It boasts a unique proof-of-stake consensus mechanism called Ouroboros, which is designed to be more energy-efficient and scalable than its predecessors. Hoskinson has been actively involved with Cardano, recently warning the community about the proliferation of AI scams.

Descending Triangle

Ali’s analysis highlights the formation of a descending triangle pattern on the Cardano (ADA) lower timeframes. This technical formation is characterized by converging price action, with both the highs and lows gradually approaching each other.

A breakout from this pattern can occur in either direction, with a sustained close above the resistance level (currently at $0.638) signaling a potential bullish surge.

If Cardano (ADA) manages to break above $0.638, it could trigger a bullish momentum, potentially propelling the price toward the next target of $0.700. ADA is currently trading at $0.6102, down 0.43%, with some work to do to break above $0.638.

#Cardano is forming a descending triangle on the lower time frames. A sustained close above $0.638 could trigger a bullish breakout, potentially propelling $ADA toward $0.700.

However, keep a close eye on the $0.613 support. Any weakness at this level could dampen the #ADA… pic.twitter.com/Z1FRNRXdQm

— Ali (@ali_charts) December 15, 2023

A Critical Support Level

However, the path towards $0.700 is not without risks. Ali highlights $0.613 as a critical support level, and any weakness here could dampen the bullish momentum and lead to a retest of lower levels.

Cardano (ADA) dropped below this level in the late hours of December 15. However, it has retested this level and could still break through, renewing the hopes for a bullish run. However, continued weakness below this level could send ADA lower, as Ali Martinez predicts.

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— TimesTabloid (@TimesTabloid1) July 15, 2023

The Road Ahead

It is important to remember that technical analysis alone is not a foolproof indicator of future price movements. Fundamental factors, such as regulatory developments, the broader cryptocurrency market sentiment, and the success of Cardano’s ongoing development efforts, will also play a significant role in shaping the price trajectory.

Meanwhile, ChatGPT recently predicted a massive surge of almost 2x for ADA before Christmas, adding another layer of intrigue to Cardano’s future movement.

Whether the immediate future holds a bullish breakout or a retest of lower levels, Cardano’s journey is undoubtedly worth watching.

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Tobi Loba

Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.