CandleFocus

Why is Cardano's ADA on the Brink of a Bullish Breakout?

Author: Content Editor
According to a detailed technical analysis of Cardano's native token, ADA, there are strong indications of a possible bullish breakout in the near term. The analysis highlights a well-defined Elliott Wave pattern and the formation of a bullish pennant. The ADA cryptocurrency is currently in Wave 3 and nearing the apex of the pennant triangle, suggesting an imminent breakout. There is a vital support zone around the $0.90 and $0.82 range, while the resistance zone around $1.24 and $1.32 has been identified as a key barrier. If the resistance is broken, Fibonacci extension levels suggest possible gains of approximately 31% to 59%. On-chain data also supports the bullish outlook, with an increase in derivatives volume and a greater number of short positions being liquidated compared to long positions.

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