Cardano is trading at $0.73 with a 2.30% drop in 24 hours. It has created a descending wedge composed of higher highs and lower lows. However, the support line is falling at a slower angle than the upper resistance. This indicates that while sellers may be active, they are losing strength.
Analyst Crypto Front identifies this setup, stating that not only has it formed, but it has also broken. He added that, following Cardano's price movement from the resistance line, it is returning to this. This means that the resistance of the descending wedge is turning into support.
When the price tilts northward from this pattern, it is a sign that the bulls are gaining. However, caution is still necessary, as after today's drop, ADA's price has returned to this line.
If the wedge develops bullishly, as is usually the case with these patterns, it would not be surprising to reach $1.35. This represents an increase of about 101% from the current price. However, Crypto Front's bullish outlook does not end here. He adds that Cardano could reach $5 in a peak bull market.
Reaching $5 is part of a long-term price forecast for Cardano for 2025, but $1.35 is the closest target that could be reached soon. The likelihood of reaching $1.35 is even greater if the rest of the market starts to rise.