Cardano (ADA) could be on the brink of breaking out from a multi-week symmetrical triangle pattern, according to a YouTube analyst from Crypto Capital Venture. In a detailed analysis of ADA’s charts in a video posted on December 28, the analyst pointed out the formation of a symmetrical triangle pattern that has been developing over recent weeks. The key observation made by the analyst was the breakout of ADA above the upper trendline of the triangle, indicating a potential upward move.
Despite the potential breakout, there are significant obstacles that Cardano needs to overcome. One of the major obstacles is the 200-week moving average, which has historically acted as a strong resistance level for ADA. Additionally, the weekly time frame indicates that ADA is currently in an overbought territory, which often leads to a pullback. The analyst acknowledged this possibility, stating that a pullback aligns with Cardano’s pullback patterns from previous market cycles.
Nevertheless, if ADA manages to push through the overhead resistance and continue its upward trajectory, it could signify a bullish shift compared to previous market cycles. The analyst was optimistic about the potential breakout and set a price target of $0.80 if the breakout sustains itself.
In addition to the mentioned resistance and the symmetrical triangle pattern, the analyst highlighted a critical level indicated by a red rectangle on the chart. The red rectangle represents the swing high that occurred on December 13. This level may also play a significant role in determining ADA’s future price movement.
With the potential breakout from a multi-week symmetrical triangle pattern and the breach of the upper trendline, Cardano is attracting attention from both analysts and investors. While there are significant overhead resistance levels and the possibility of a pullback, the bullish shift in the market cycle could open doors to further gains. The price target of $0.80, if the breakout sustains itself, indicates an optimistic outlook for ADA. Traders and investors are advised to closely monitor ADA’s progress and key levels to make informed decisions.