Cardano price has pulled back in the past few days, falling by over 15% from its highest point this month.
Cardano Cardano
ADA 2.92% Cardano retreated to $0.731 on Monday, down more than 15% from its highest level this month. The decline has raised concerns among investors about whether the recent ADA rally has ended.
The four-hour chart shows that Cardano has slowly formed two highly bullish patterns. First, the ongoing retreat appears to be part of a falling wedge pattern, which often leads to a bullish breakout.
A falling wedge occurs when two descending and converging trendlines are present, with a breakout typically happening as they near confluence.
This wedge is forming after the coin soared from $0.644 to a high of $0.862 last week. That price action suggests the formation of a bullish pennant, a positive continuation pattern that features a sharp upward move followed by a brief consolidation.