ADA Analysis: Key Levels and Trend Outlook 2024.12.28
2024-12-28
Category: None

Hello, this is Greedy All-Day.
Today’s analysis focuses on ADA (Cardano).

Weekly Chart Analysis



Looking at the weekly chart, ADA is currently within the green box frame.
However, unlike the past, where the price oscillated within a box range with alternating bullish and bearish candles, the current zone has seen three consecutive bearish weeks, signaling persistent selling pressure.

Key Support Zone: Red Box

The red box represents the resistance level from 2022 before the breakout. It is now acting as a support zone under test.
If the support holds: ADA may follow a similar range-bound movement as seen in the green box on the left.
If the support fails: ADA is likely to drop further into the yellow box zone.
Breakdown Scenario:

If the yellow box support also fails, ADA may enter the blue box frame, with the potential to decline to as low as 0.216.

Daily Chart Analysis



The daily chart reveals several bearish patterns:

Head & Shoulders (H&S) pattern is complete.
Descending Triangle pattern is also complete.
Key Observation:

ADA is currently holding the 0.87 support level.
However, if the price breaks below the Ichimoku Cloud on the daily chart, the bearish patterns suggest a significant loss of buying momentum and a potential shift to selling pressure.
Target:

If the bearish scenario unfolds, the expected sell-off could lead to a 51% decline, with the price first testing the yellow box zone.
Additional downside potential will depend on whether support emerges in the yellow box zone.

4-Hour Chart Analysis



The 4-hour chart confirms that ADA has broken its short-term trendline, indicating a definitive shift in momentum.

Buying pressure appears to have dissipated, suggesting that the bullish trend is effectively over for now.
Upside Potential:

For ADA to regain bullish momentum, it would need to climb back above $1.00.
Until that happens, the market should be approached with a sell-oriented perspective.

Conclusion

ADA is currently in a bearish trend, with critical support levels being tested.

If 0.87 support holds, a temporary range-bound movement may occur.
If it breaks, ADA could fall to the yellow box zone or even enter the blue box frame, with a potential low of 0.216.
For now, a sell perspective is more appropriate, with cautious monitoring of the $1.00 level for potential signs of recovery.

Trade wisely, and best of luck! 🚀