Cryptocurrency analyst ZAYKCharts has revealed something interesting regarding Cardano’s price pattern on X after it just broke through the $1 resistance level. He noted that the pattern looks like it could mean prices are headed higher soon. Looking at the daily chart of ADA, we can see that it has finally broken out after trading sideways for a while. This breakout indicates that Cardano may be heading towards an upward movement.
ADA Chart Analysis: Breakout from the descending channel
Cardano price has been stuck in a bearish pattern for several months. During the second half of 2024, the price continued to make lower highs and lows, showing that sellers were in control.
But things changed in early January 2025. The price crossed its usual ceiling, breaking out of this downward trend that had lasted for several months. This type of movement often means that the trend is turning from negative to positive.
ZAYKCharts noted that the breakout was important in confirming ADA’s upside potential. This break in the pattern indicates that the price of Cardano may continue to rise. Since it has surpassed the price level that was holding it back, there is a good chance it will continue higher from here.
Support and resistance areas for ADA
The current price of ADA has bounced off the lower trend line of the descending channel, which previously acted as a support area. Given the breakout, this level is now expected to turn higher, perhaps forming a new support level in the process. The price is likely to maintain this support as it moves higher, helping to consolidate the uptrend.
On the upside, ADA price is facing resistance at higher levels, with the first important target in the $1.30-1.40 range. Chart analysis indicates that the $1.51 price level is a major resistance point to watch. If the price continues to rise, ADA may reach these levels, depending on whether the breakout continues and the support areas hold.
Read Also: Litecoin (LTC) Price Action Points to a Possible Uptrend – Analyst Explains Why
Bullish flag model and analyst forecasts
The bullish flag pattern identified by ZAYKCharts played a major role in predicting a bullish wave for Cardano. A bull flag is usually followed by a sharp upward movement, followed by a period of consolidation, as seen in the recent ADA chart.
A break above the upper border of the flag indicates the possibility of a continuation of the initial price rally. ZAYKCharts confirmed its forecast for a bullish wave based on this technical pattern, which is consistent with the chart movements.
The ADA chart, along with the ZAYKCharts tweet, provides insight into analyst forecasts for cryptocurrencies. As the market reacts to these signals, ADA price performance iThe coming weeks will depend on whether the bull flag pattern holds and whether ADA is able to maintain momentum above the breakout point.
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