Cardano (ADA) Price Forms Triangle, Eyes Breakout Above $0.70 Resistance
- Cardano forms a symmetrical triangle on 4-hour chart, indicating a likely breakout soon.
- Break above $0.70 resistance could push ADA toward short-term targets of $0.72$0.77.
- Whales accumulated 410 million ADA in April, signaling confidence
Cardano has seen a notable rise of over 40% from early April lows, showing that investor appetite for altcoins is returning. However, as the broader crypto market grapples with macro uncertainty and stays under major resistance points, ADAs current position appears to be pivotal. The asset is now trapped in a tight range, pointing to a battle between buyers and sellers.
The spotlight is now on a symmetrical triangle forming on the 4-hour chart. Token Talk, a trader on X, has drawn attention to this setup. Cardano is currently caught between rising support and falling resistance. This narrowing structure suggests indecision, but history shows that such formations often lead to significant breakouts.
Supporting a bullish case, Token Talk also noted ADA is nearing a major test at the $0.70 resistance level. This zone has blocked past rally attempts, making it a crucial level. A successful breakout may trigger upward movement toward $0.72$0.74 in the short term.
Cardano Whale Accumulation Hints at Possible Upside
Further bolstering confidence, April saw significant ADA accumulation. Whale wallets picked up a total of 410 million ADA coins throughout the month. This massive buying suggests confidence from large-scale investors and often precedes major price moves when supply becomes scarce.
Another Analyst, on May 3, Carl Runefelt, also known as Carl Moon, identified the same symmetrical triangle on the 4-hour chart. He projected a bullish target of $0.7730 if Cardano breaks upward. However, a failure at support could push it down to $0.6280.
Analyst Arman Shaban on TradingView, brought a wider view into focus. His 3-day ADA/USDT chart showed a run from $0.33 to near $1.32 before strong sell pressure appeared near whats called a Bearish Order Block. This reversal set off a correction phase that pulled prices back down.
During that drop, ADA found support at a key Demand Zone around $0.50, which lined up with a Bullish Order Block. The price also filled a nearby Fair Value Gap, giving traders an important point to re-enter the market. Shabans view highlights upcoming hurdles and target zones at $0.75, $0.81, $0.93, and $1.05.
Indicators Point to Weakening Momentum
As of now, Cardano is trading at $0.659, has slipped beneath the 50-day simple moving average at $0.6704. This move suggests growing weakness as buyers struggle to reclaim momentum.
Technical indicators support this cautious outlook. The Relative Strength Index (RSI) reads at 45.88, placing ADA in a neutral zone without clear bullish or bearish dominance. Meanwhile, the MACD indicator shows a bearish crossover. The MACD line has dropped below the signal line, with decreasing green histogram bars hinting at waning buyer strength.
Data from ADA derivatives adds to the uncertainty. Open interest fell 6.18% in the past 24 hours, settling at $750.38 million. This decline in open contracts signals reduced speculative activity and less trader commitment to current price levels.
Despite the strong accumulation earlier in April and the formation of a significant triangle pattern, current signals lean bearish. Resistance at $0.70 remains firm, and momentum indicators continue to suggest caution. Whether Cardano manages to break out or fades into further consolidation may depend on how investors and traders respond at this key price inflection.
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Read more: https://www.tronweekly.com/cardano-eyes-breakout-above-0-70-resistance/
Text source: TronWeekly
