ADA Eyes $1.10 Resistance After Triangle Breakout

ADA Eyes $1.10 Resistance After Triangle Breakout

A prominent crypto analyst, Sssebi, revealed that Cardano (ADA) has entered a phase of consolidation, developing within a symmetrical triangle pattern on its price chart. This type of technical pattern is known for its characteristics of converging trendlines, one connecting a series of lower highs and the other connecting higher lows. 

These converging lines indicate that market participants are uncertain about the asset’s direction, causing a compression in price action.

Typically, symmetrical triangles are seen as continuation patterns, suggesting that the prevailing trend may continue once the price breaks out of the pattern. However, these triangles have a slightly higher statistical probability of resolving to the upside, particularly in a market environment where bullish sentiment is prevalent. 

Investors and traders are closely watching for a breakout above or below this triangle, as it could set the stage for the next significant price move.

From the price action standpoint the upside target is stands at $1.10, which would be a major resistance level if the price heads to the upside. This is at a level consistent with the areas of consolidation in the past and is a point where the bulls can push higher if they gain momentum.

Conversely, the bottom target for Cardano is $0.80. A drop below the triangle’s lower boundary could see ADA testing key support levels, where a possible reversal or consolidation can be seen, depending on the general trend in the market.