Cardano ($ADA ): A Critical Watch as Consolidation Builds Toward Breakout

Cardano ($ADA) has officially joined the lineup of altcoins I will be covering regularly—both due to growing demand and its inclusion in The Coinbase 50 Index (COIN50). As the seventh-largest cryptocurrency (excluding stablecoins) with a market cap of $28.6 billion, this project holds significant potential. Its all-time high (ATH) of $3.10, reached in September 2021, suggests ample room for growth.

Over the past seven months, $ADA consolidated between $0.30 and $0.50, leading to a sharp breakout that tripled its value within 27 days, peaking at $1.33 in early December. However, this momentum was followed by two months of corrective price action, forming lower highs and lower lows until the price touched $0.50—its lowest in nearly three months. Interestingly, this drop precisely hit the projected target of a falling wedge pattern. The reaction was swift, as strong buying pressure propelled $ADA back above $0.80 by Monday’s close, keeping the weekly double-bottom pattern intact, with a primary target of $1.40 still in play.

Currently, is trading within a tight range between $0.80 and $0.85, struggling against short-term bearish momentum. The 50-day moving average (MA) remains downward-sloping, while the 200-day MA supports its long-term bull market structure. Before considering an entry, I am looking for clear confirmation signals: a valid trend reversal pattern, a higher high formation, RSI breaking above 60, and a strong volume breakout. While consolidation continues, the longer this phase extends, the more powerful the next breakout could be. This is an asset to keep on the radar.

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