Cardano’s ADA token has been experiencing a period of range-bound trading, according to a recent video analysis by a popular YouTube crypto analyst. The analyst highlights that ADA has been unable to establish new price highs or lows, remaining stuck within the confines of support and resistance levels that have formed a triangle pattern on its price chart.
The Triangle Formation
The analyst suggests that ADA is currently trapped within an overall triangle structure. While it is uncertain whether the pattern qualifies as a technical Elliott Wave triangle, the analyst believes that a significant price move is imminent as the token approaches the apex of the triangle.
Possible Wave Count
The analyst presents a primary scenario that involves ADA completing the A wave of a larger corrective structure with one more high in a wave five. This would be followed by a B wave pullback and ultimately a C wave pushing to new highs. Such a scenario would confirm the establishment of a lasting cyclical low in June.
As long as ADA remains above key support around $0.29, the analyst’s preferred scenario holds true. However, a drop below this level would require a reconsideration of the overall market structure. Alternatively, a breakout above $0.40 would indicate the beginning of a new uptrend, with a clear move above $0.41 confirming the breakout and completion of the triangle pattern.
Until a breakout above $0.40 occurs, it is likely that ADA will continue its range-bound consolidation, according to the analyst’s perspective. The analyst emphasizes the need to observe a break above at least 40 cents as an indication of a successful breakout. A break above 41 cents would further confirm the breakout and provide an opportunity for renewed upside potential.
Cardano’s ADA token is currently stuck in a range-bound trading pattern, with support and resistance levels forming a triangle on its price chart. The analyst suggests that a significant price move is on the horizon as ADA approaches the apex of the triangle. The preferred scenario involves ADA completing the A wave of a larger corrective structure, while a breakout above $0.40 would signal the start of a new uptrend. Until a breakout occurs, it is expected that ADA will continue to trade within the consolidation pattern.