A YouTube analyst, known as Crypto Capital Venture, suggests that Cardano (ADA) may be on the verge of a breakout from a multi-week symmetrical triangle pattern. In a detailed analysis of the ADA charts on December 28, the analyst observed the formation of this pattern over the past few weeks. The breaking of Cardano’s upper trendline serves as a potential signal for an upward move. However, the analyst warns that there are significant obstacles ahead.
Despite the positive outlook, ADA faces substantial resistance at its current price level. One notable hurdle is the crucial 200-week moving average, which has historically acted as a major resistance for Cardano. Furthermore, ADA finds itself in overbought territory on the weekly time frame, making a pullback a possibility.
The analyst acknowledges the potential for a pullback, emphasizing that such a scenario would align with Cardano’s pullback patterns from the previous market cycle. While this may cause a temporary setback, the analyst remains optimistic about Cardano’s long-term prospects.
Despite the potential challenges, the analyst believes that if ADA can overcome the overhead resistance and sustain its upward momentum, it may mark a bullish shift compared to previous market cycles. In light of this, the analyst sets a price target of $0.80, should the breakout continue.
In addition to the discussed resistance levels and patterns, the analyst draws attention to a significant swing high on December 13. This red rectangle on the chart represents a notable price point that may impact Cardano’s future movement. The interplay between this swing high and the current price action is an intriguing aspect to monitor closely.
As Cardano potentially breaks out from a symmetrical triangle pattern, the market awaits the cryptocurrency’s next move. While ADA faces significant overhead resistance and the possibility of a pullback, a sustained breakout could indicate a bullish shift for Cardano compared to past market cycles. With a target price of $0.80 in mind, the YouTube analyst continues to closely observe ADA’s price action and the interplay with key resistance levels, including the swing high from December 13. The impending developments in the Cardano market are poised to have a substantial impact on the cryptocurrency’s trajectory in the near future.