Cardano (ADA) Tests Key Triangle Pattern: Is a Bull Run Coming?
Cardano’s price action has moved into a technically sensitive area, drawing attention from market observers. After gradually declining for months, the token is now trading near the lower boundary of a long-standing descending triangle.
This formation has shaped Cardano’s broader market structure since its previous cycle peak. Analysts note that how the asset responds at this level could determine whether the current weakness deepens or gives way to a broader recovery attempt.
Recent selling pressure pushed Cardano to a low of $0.22 last week. This level closely aligns with the bottom of the descending triangle visible on the weekly chart. This area has historically acted as a stabilizing zone, preventing more aggressive declines.
While ADA has since rebounded modestly from that low, technical analysts caution that the price remains vulnerable as long as it trades within the confines of this pattern.
According to a TradingView analysis shared by Cobra Vanguard, the descending triangle began forming after Cardano topped out near $3.10 during the 2021 bull market. Since then, price action has been defined by a series of lower highs, while repeated pullbacks have found temporary support near the same lower boundary. Multiple attempts to reverse the trend have failed, reinforcing the importance of the current price zone.
Downside Risks if Support Fails
Despite the recent bounce, the analyst outlined a downside scenario that remains firmly on the table. If ADA fails to hold above the triangle’s support, a break below $0.20 could follow. Such a move would be technically significant, as Cardano has remained above this level since early 2021.
A sustained move beneath it could expose the asset to deeper retracements, with historical price areas near $0.077 coming back into focus. In a more extreme case, prolonged weakness could even open the door to a retest of levels last seen during Cardano’s earliest trading history.
At the same time, the analysis does not dismiss the possibility of an upside movement. Cobra Vanguard emphasized that while chart patterns often guide expectations, they are not guarantees.
Market structure can shift unexpectedly, particularly if broader sentiment across the crypto market improves. The analyst noted that current conditions still loosely align with the traditional four-year cycle, even though recent price behavior has deviated from past norms.
Alternative Scenario Suggests Possible Breakout
In another scenario, a decisive move above the descending triangle would signal a structural change in Cardano’s trend. The analyst identified a sustained break above the $0.60 region as an early confirmation that bullish momentum may be returning.
From there, further upside could happen if market participation strengthens and risk appetite improves. In this case, longer-term projections extend significantly higher, with the analyst pointing to levels near $2.99 as a theoretical objective should a full trend reversal develop.
At this time, Cardano remains under pressure. Sellers continue to dominate short-term price action, and confidence across the broader crypto market remains fragile. While the technical setup offers clear reference points for both upside and downside scenarios, analysts point out that patience is required because resolution may take time.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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