Cardano may be positioned for a rebound after retesting the support level of a multi-year bullish chart pattern. Analyst “The ChartWhisperer” suggested in an analysis that ADA could bounce from current price. This is because ADA is revisiting diamond bottom support on the weekly timeframe.
The token is already showing signs of recovery. After posting three consecutive green daily candles from Friday through Sunday, the rally extended into Monday’s trading session with Cardano gaining over 3% during early hours.
Diamond pattern emerges from 2018 price structure
The analyst noted on September 2, 2024, that Cardano’s price chart formed a diamond bottom pattern. Weekly chart analysis reveals the coin has traded within this diamond-shaped structure since April 2018. ADA broke out from the pattern in October 2023, climbing from approximately $0.24 to reach $0.81 by March 2024.
The token entered a correction phase after hitting this peak price. Cardano retested the diamond breakout zone around $0.27 in August 2024. A successful retest triggered another bullish wave for the asset, driving strong price growth through December 2024. ADA surged from lows of $0.27 to a high of $1.32, marking a 389% increase.
Current retest mirrors historical pattern behavior
TheChartWhisperer highlighted similar occurrences in Cardano’s recent price action. Following the December 2024 high, the token recorded another pullback, retracing 71% to present levels. The chart displays a flash crash to $0.27 on October 10, which retested the diamond bottom support before rebounding to $0.70.
The cryptocurrency has since gradually declined to last week’s low of $0.34. The analyst sees a repeat of previous price development from the support zone, stating that Cardano is “back in business.”
From current levels, he anticipates a price surge to new heights. His ADA forecast of $48 remains active. The analyst projected this move in his September 2024 Cardano price prediction. While the target did not materialize during that timeframe, the current retest of major support has reactivated the projection.
The diamond bottom pattern typically signals a reversal from bearish to bullish price action. Successful retests of breakout levels often confirm pattern validity and can lead to extended rallies.
