According to a YouTube analyst at Crypto Capital Venture, there’s speculation that Cardano might be on the verge of breaking out from a symmetrical triangle pattern that has persisted for several weeks.
In his video posted on December 28, the analyst conducted a thorough analysis of the Cardano (ADA) charts. His assessment suggests that Cardano might be poised for a breakout from a symmetrical triangle pattern that has been taking shape over the preceding weeks.
The analyst specifically highlighted ADA’s recent breach of the upper trendline within the triangle, suggesting that this development could indicate the initiation of an upward movement.
“I want to break down the current move and discuss my personal expectations,” he remarked.
Nevertheless, he issued a cautionary note, highlighting that ADA encounters substantial overhead resistance around its present price level. This includes the pivotal 200-week moving average, a historical point of major resistance for Cardano. Additionally, given that ADA is in overbought territory on the weekly timeframe, a pullback should not be ruled out.
“If ADA fails here on the daily, […] that’s okay because from a momentum oscillator perspective, from being overbought perspective, that’s in play,” the analyst remarked.
He clarified that a drop would align with Cardano’s historical pullback patterns observed in the previous cycle.
Despite these considerations, the analyst maintains that if ADA successfully overcomes the overhead resistance and continues its upward trajectory, it could signify a bullish departure from previous market cycles. He has set a price target of $0.80 if the breakout proves sustainable.
