Market Analysis

CARDANO PRICE ANALYSIS & PREDICTION (October 25) – ADA Reaches Resistance After a Week Recovery, Will Price Breakout of This Wedge?

While most altcoins surged through their mid-term resistance since the start of the week, ADA found it difficult to break higher as it remains trapped in a descending wedge after a sharp rejection. It is currently up by 15%.

A few days ago, Cardano’s price took off at a base support level of $0.24 and increased significantly by 18% to $0.294 – reaching its highest price level since August 14. Unfortunately, the bears intercepted and the buying pressure paused since yesterday.

This interception came after testing the upper boundary of a wedge, which serves as a resistance line for six months. Despite that, the bulls are still trying to regroup back in actions on the lower time frame.

Looking at the setups on the higher timeframe, ADA is yet to get out of the woods. The price must increase above the $0.30 level before we can start to consider a short-term bullish. That could trigger a break out of the descending wedge.

On the other hand, a drop below the mentioned base support could facilitate selling to the lower boundary of the wedge. Such setups could position the market in a more bearish condition. But with the ongoing positive sentiments across the market, the price is likely to go north rather than south. 

The potential level to watch for a wedge breakup lies at $0.38 – July’s high. However, the price currently looks strong on the daily chart.

ADA’s Key Levels To Watch

Source: TradingView

If ADA advances above $0.30, there’s an immediate resistance level at $0.31 before increasing to $0.33 and $0.35, where the price broke down in June.

In the meantime, the support level to keep in mind for a pullback lies at $0.267. A drop below the $0.24 level could bring the price to the low of $0.22 and $0.20, sitting at the lower boundary of the wedge.

Key Resistance Levels: $0.30, $0.33, $0.35

Key Support Levels: $0.267, $0.24, $0.22

  • Spot Price: $0.284
  • Trend: Bullish
  • Volatility: Moderate

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.