19.9 C
London
Monday, July 7, 2025
HomeCRYPTOCURRENCY ALTCOINCardano (ADA) Exits Falling Wedge Pattern—Is a $1.16 Target Achievable?

Cardano (ADA) Exits Falling Wedge Pattern—Is a $1.16 Target Achievable?

Date:

Related Stories

Solana Price Prediction: Opportunities for Significant ROI with SOL May Be Dwindling, but This Coin Priced Under $0.002 Could Offer a New Chance

Not many people could have predicted that Solana (SOL) would rise from being worth pennies to approx...

ZachXBT Unveils the Supercycle of Crypto Crimes Amid Increasing Hacks and Scams in 2025

Blockchain analyst ZachXBT warned of a growing crypto crime supercycle in 2025He said the rise start...

Eyenovia Transitions to Hyperion DeFi with the Launch of $50M HYPE Treasury and HYPD Ticker

Eyenovia Confirms a $50 Million Plan to Build a HYPE Treasury Backed by Hyperliquid TokensEyenovia c...

Gemz Daily Combination for June 18, 2025

Gemz Daily Combo has once again electrified its user basedelivering another high-intensity challenge...

XRP Price in a Vulnerable Position — Will Bulls Be Able to Uphold the Support Level?

XRP Price Faces Upside HurdlesXRP price faced rejection near $2.650 and corrected gains. The price i...

Cardano (ADA) Breaks Out of Falling Wedge Pattern, Signals Bullish Reversal

Cardano (ADA) has broken out of a falling wedge pattern on the daily chart, signaling a bullish reversal. The breakout occurred on April 23, 2025, with price now aiming for a potential 63% gain toward $1.1606.

Falling Wedge Pattern Triggers Bullish Breakout

ADA traded inside a falling wedge from early March to late April. Converging trendlines defined the wedge, each forming lower highs and lower lows. This structure typically suggests declining bearish pressure, with a breakout expected above the upper trendline.



Cardano confirmed this breakout on April 23. The price moved above the wedge resistance and closed higher, pushing through the 50-day Exponential Moving Average (EMA), now at $0.6886. That move added more weight to the bullish signal.

At the breakout, ADA traded near $0.62. By April 29, it climbed to $0.7129—an increase of over 14%. Volume surged to 7.83 million, supporting the breakout with strong buying interest.

The Relative Strength Index (RSI) currently reads 59.26. It remains above the neutral 50 mark, showing bullish momentum, but it’s still below the overbought zone at 70, leaving room for further price movement.

Technical analysts estimate the target for a falling wedge breakout by measuring the height of the wedge and projecting it from the breakout point. In ADA’s case, this gives a target near $1.1606—around 63% higher than the current price. However, this target stays valid only if ADA exceeds the 50-day EMA and the broken wedge resistance line. A drop below $0.6886 would invalidate the bullish structure.

BBTrend Drops as ADA Momentum Fades

However, the BBTrend indicator, which tracks the strength of price trends through Bollinger Bands, has dropped sharply. On April 26, the reading stood at 13.27. By April 29, it fell to 7.55. This decline shows that the recent uptrend in ADA is losing force, even though the token has closed in green for four straight days.

Typically, a rising BBTrend means strong momentum with expanding volatility. In contrast, a falling BBTrend signals slowing price movement or the beginning of a consolidation phase. ADA’s current BBTrend still shows positive momentum, but it’s clearly weaker than earlier in the week.

If this decline continues, Cardano may enter a sideways phase. On the other hand, if buying interest returns, the price could push higher and extend its recent gains.

Directional Movement Index Shows Balance Between Bulls and Bears

The Directional Movement Index (DMI) adds further evidence of fading momentum. The ADX (Average Directional Index), which measures trend strength without direction, dropped from 31 to 17.14 in just two days. Values below 20 often suggest weak trends or the start of a consolidation period.

At the same time, the +DI (positive directional indicator) rose slightly to 19.95, up from 15.96 a few hours earlier, but still below the 26 mark from two days ago. The -DI (negative directional indicator) currently stands at 19.07, also showing mixed movement—down from 21.16 recently but up compared to 14.49 earlier.

These close readings between the +DI and -DI indicate market indecision. Neither bulls nor bears currently hold strong control, suggesting Cardano might trade sideways unless a clear trend forms soon.

Latest News

LEAVE A REPLY

Please enter your comment!
Please enter your name here