$ADA: When BREAKOUT?
2025-02-04
Category: None

CRYPTOCAP:ADA  joins my stable of altcoins that I will be covering from now on—both by request and because it's made in America and belongs to The Coinbase 50 Index (COIN50).

7th biggest crypto, excluding stablecoins, by the way (current market cap: $28.6B). Its all-time high (ATH) was recorded in September 2021 at $3.10. Plenty of room to grow, then.
Let's cut to the chase.

First things first: Cardano consolidated for seven months in a range between roughly $0.30 and $0.50 (April to the U.S. election). That led to an explosive breakout, tripling the price in the next 27 days until it topped out at $1.33 at the start of December.

Since then? Two months of consolidation. Lower highs and lower lows have dominated the price action until  CRYPTOCAP:ADA  hit its lowest price in nearly three months last night at $0.50—also hitting the falling wedge target perfectly. 

To the T.

That dip got immediately bought up, and the price rebounded to close just above $0.80 on Monday. The weekly double-bottom pattern is still valid since we didn't see a close below its neckline, meaning the main target remains $1.40.

On the daily chart, the price is stuck in a narrow range between support and resistance ($0.80–$0.85). Momentum is down, the 200 MA is far below (bull market coin), but the 50 MA is downtrending, reinforcing the bearish short-term momentum.

What I need to see before considering a position:

- a properly confirmed reversal pattern.
- Market Structure shift (higher high formation or at least higher low+).
- RSI over 60 and breaking above immediate resistance (plus 50 MA).
- a volume Breakout—yesterday’s huge daily volume was nice, but not enough.

I'll be monitoring this closely. Consolidation continues, but the longer it lasts, the more explosive the breakout. Let's not miss it—this asset is worth staying tuned for. 💙👽


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