Cardano’s ADA token has been moving within a range-bound consolidation phase, as observed by a popular YouTube crypto analyst. The analyst notes that ADA has been unable to establish new price highs or lows in recent days, indicating a stagnant market condition. The price chart reveals a triangle pattern formed by key support and resistance levels, trapping the token in an overall triangle structure. While it is unclear if this pattern qualifies as a technical Elliott Wave triangle, the analyst anticipates an imminent volatile price move as ADA approaches the apex of the triangle.
The primary scenario that the analyst is monitoring involves the completion of the A wave of a larger corrective structure. The analyst expects “one more high in a wave five”, followed by a B wave pullback, and then a C wave pushing the price to new highs. This scenario would confirm that a lasting cyclical low was established in June. As long as ADA remains above the crucial support level of $0.29, the analyst’s preferred “yellow wave count” remains valid. However, if the token drops below $0.29, the structure would need to be reconsidered.
Alternatively, there is a possibility of a direct rally from the current triangle consolidation pattern. The analyst emphasizes the importance of monitoring a breakout above $0.40, as it would signal the beginning of a new uptrend. A clear move above $0.41 would confirm the breakout and completion of the triangle pattern, opening the door for renewed upside potential. Until a breakout occurs, the range-bound consolidation is expected to persist.
To confirm a successful breakout, the analyst highlights the need for ADA to surpass the $0.40 threshold. A break above 40 cents would indicate an upward momentum, while a breakout above 41 cents would provide confirmation of the breakout. However, until these levels are surpassed, the range-bound consolidation is likely to continue. The analyst emphasizes the importance of closely monitoring the price action to identify any signs of a breakout.
Cardano’s ADA token is currently trapped in a range-bound consolidation phase, with no significant price movements in recent days. The triangle pattern formed by key support and resistance levels suggests a potential volatile price move in the near future. The analyst presents two possible scenarios: the completion of a larger corrective structure or a direct rally from the triangle pattern. The breakout above $0.40 is crucial for signaling a new uptrend, while a move above $0.41 would confirm the breakout and open the door for further upside potential. Until a breakout occurs, the range-bound consolidation is expected to persist. Traders and investors should closely monitor the price action to identify any signs of a breakout and adjust their strategies accordingly.
