🔍 Cardano (ADA) Technical Analysis – 4H Chart
Cardano ($ADA ) has just executed a clean breakout above the key resistance zone at $0.650 breaking out from a well-formed bullish rectangle pattern. This move signals strong buyer momentum and opens the door for a potential bullish continuation.
📈 Technical context:
Price has moved above the 50-period SMA, showing upward momentum.
RSI is at 67.72 – nearing overbought, but still has room for further upside.
Recent RSI divergences correctly flagged bullish momentum shifts.
ATR is near local lows, hinting at a potential surge in volatility soon.
🎯 Target: $0.685 – $0.69
🔄 Potential Scenarios:
✅ Bullish:
If ADA holds above $0.66 and confirms the breakout on higher timeframes (e.g. daily), the next leg up toward $0.685–$0.69 is likely. Increasing volume would further validate the move.
⚠️ Bearish (healthy pullback):
Rejection from the $0.66 zone could lead to a retest of $0.645–$0.655 (previous resistance, now support). This may offer a good re-entry point if momentum resumes.
❌ A break below $0.625 would invalidate the breakout setup and could lead to a return to the lower consolidation range.
💡 ADA is showing a favorable technical setup with a clean breakout and supportive indicators. Key to watch: confirmation above $0.66 and RSI behavior near the 70 level.
📣 Watch the $0.66–$0.67 zone closely – it may define ADA's next major move.
