TradeCityPro | ADA Eyes Breakout from Bearish Channel Top👋 Welcome to TradeCity Pro!
In this analysis, I want to review the ADA coin for you. The Cardano project is one of the oldest and most popular projects in crypto.
🔍 The coin of this project has a market cap of 22.21 billion dollars and is ranked 10 on CoinMarketCap.
📅 Daily Timeframe
On the daily timeframe, ADA is moving downward within a descending channel and is currently trying to break out of the channel from the top after reaching a support zone.
⭐ One positive sign for buyers is that they didn’t let the price reach the bottom of the channel. Instead, they used the overlap between the midline of the channel and the key 0.5579 zone (marked as a support area) to stop the price from falling.
✨ However, as long as the coin is fluctuating inside this channel, the trend remains bearish. Holding the midline is not a sign of trend reversal yet, but it does indicate weakening of the current trend and may act as one of the bases for a future reversal.
✅ Looking at the RSI oscillator, we can see that each time the price tried to break the channel’s top, RSI reached the 70 area and got rejected, causing the price to drop.
⚡️ Currently, the price is very close to the top of the channel, but RSI has just broken above the 50 line and is moving upward. This is a bullish sign for buyers, as it shows there is still room for upward momentum, which increases the chance of a breakout.
🎲 The nearest trigger for confirming the breakout from the channel is the 0.7212 zone, which is a bit far, and the price will likely form a higher low and high before reaching it, confirming the breakout earlier.
💥 But based on the current data, the breakout trigger remains at 0.7212, and for spot buying, this is the first valid entry level.
👀 Personally, I’m not adding any altcoins to my portfolio right now, as Bitcoin Dominance is still in an uptrend. As long as this trend continues, large capital flows into altcoins are unlikely.
🛒 More reasonable triggers for spot entries would be a breakout above the 0.8414 supply zone. If I were to buy, I’d enter at this level. The final trigger is 1.1325, which is quite far from the current price, and if BTC Dominance continues upward, it could take several months to reach this zone.
🔽 If you already hold this coin in spot, your stop-loss can be set at a break below the 0.5579 level. A breakdown here would also provide a good short setup in futures, as the price could move toward the bottom of the box or the static level at 0.4322.
📝 Final Thoughts
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
