according to the website - By CoinPedia News
The price of Cardano (ADA) recently broke through the boundaries of its long-standing descending channel, closing above the 200-day exponential moving average (EMA) for the first time in several months. Although the rally has slowed down recently around $0.72-$0.73, indicating a temporary slowdown in upward momentum, the overall technical picture remains fully positive.
Despite the recent ongoing consolidation, especially in the context of profit-taking in the cryptocurrency space, this sideways momentum for ADA resembles more of a pause than a reversal.
Furthermore, the underlying indicators point to further strengthening of the bullish momentum, while the structure formed in July remains unchanged, support levels hold firm, and accumulation patterns are forming. The price of ADA may have even greater potential for growth in the near term.
The breakout of Cardano's price chart above key averages signals strength.
It is evident that the price of ADA has been grappling with strong bearish sentiment for months, trapped in this descending wedge. But this time, the breakout from the descending wedge of cryptocurrency ADA has been the most significant achievement of the month on the daily chart. This breakout has reassured many investors who were waiting for this moment for ADA.
This movement on the ADA price chart is not ordinary; it coincides with several key factors that led to the crossing of short-term exponential moving averages (EMA), particularly the 20-day EMA rising above the 50-day EMA. This signals the beginning of a sustained upward phase.
Moreover, the breakout and holding of the ADA price above the 200-day EMA is a key long-term indicator of a northern trend. As in the last 3 months, the cryptocurrency has struggled to stay above this dynamic level, but that is no longer the case, and the recent dynamics are evident, clearly indicating a higher degree of resilience.
Despite bullish signals, the price of ADA is currently consolidating around $0.72. This pause coincides with a broader pullback in the cryptocurrency market, and Cardano has not escaped these sentiments.
As long-term investors began to take profits, Bitcoin, which recently reached a historic high of $123.2K, fell more than 5% to $116.7K.
However, this appears to be a healthy consolidation rather than a concerning reversal, and the cryptocurrency has yet to break any critical support levels. This compellingly suggests that the upward trend remains structurally robust.
From a technical perspective, the current price zone of $0.70–$0.72 may serve as a re-accumulation zone. Market participants can use this phase to regain strength before a new surge to $1.10, a psychological and technical resistance level.
Moreover, another publication offers additional information. A recent chart published by Wyckoff Insider comparing ADA/BTC shows that Cardano is currently pressing against a strong resistance level.
According to the analysis, if accumulation continues and the strengthening of the ADA/BTC pair can switch the resistance level to support. This is likely to pave the way for testing the next resistance range in the ADA/BTC pair, which may indirectly support the ADA/USD pair.
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