Technical analyst Arman Shaban from TradingView expects a new upward wave for Cardano (ADA), based on the repetition of a previous structural pattern similar to what happened in December 2024. The analysis relies on 'Smart Money' concepts that focus on institutional liquidity movements and their interaction with historical order blocks.
During the past week, Cardano traded within a range between $0.54 and $0.60, recording a price low on July 1, followed by a rebound to $0.6045. This daily increase of 8.89% and weekly gains of 6.23% attracted the attention of technical analysts who are trying to track the next movement of the currency.
Repetition of the price pattern enhances upward probabilities. Shaban's reading on the three-day timeframe indicates a completed cycle of the price structure, showing clear interaction with selling order blocks formed after Cardano's rise to $0.79 on March 4, 2024, creating resistance between $0.58 and $0.62.
Previously, this selling block led to a price decline to $0.27 by August 4, 2024, which formed a major demand zone. Since the November low of $0.32, ADA has surged upward to surpass the selling block and reach $1.32 on December 2, 2024.
Currently, the current price movement shows an attempt to attract liquidity below $0.51 before re-testing the current selling block range. Shaban believes that this behavior could lead to a new upward wave similar to last December's performance.
Technical price targets for the near and distant future. The analysis sets short-term technical targets at $0.61 and $0.76, while medium and long-term targets reach $0.93, $1.05, and finally $1.33, which is the level where the previous selling block formed, indicating the closure of the full price cycle.
Network indicators support the bullish outlook. Data on-chain shows a clear increase in network activity, reinforcing the bullish technical view. The number of daily active addresses rose by 11.99% over the week, while the number of new addresses increased by 4.79%, indicating the entry of new users to the network. The number of zero-balance addresses also rose by 12.26%, indicating a return of interaction from some dormant wallets.
This alignment between technical analysis and on-chain indicators suggests real momentum beyond temporary speculation, showing a connection between actual network usage and price growth.
Potential risks. Despite the prevailing optimism, the analysis warns of risks associated with general market volatility and the possibility of the price failing to break current resistance levels. Additionally, the hypothesis of repeating the previous pattern may not materialize due to changing market conditions, requiring cautious monitoring from investors.
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