Cardano Price Prediction: Analyst Sounds Alarm Of Break Through Key Resistance, Why A Rally Could Follow

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Based on chart indicators, the Cardano pricehas just broken through a key resistance, sparking the promise of a potential uptrend. While the cryptocurrency is gearing up for a possible bullish rally, a crypto analyst has also shared the downside risks Cardano could experience if it fails to hold crucial support levels.  Cardano Price Breaks Falling Wedge Resistance, Signals Uptrend

The Cardano price appears to be on a significantly bullish trajectory, as a crypto analyst on TradingView identified as ‘MyCryptoParadise’ has sharedan in-depth analysis of its recent price movements. According to the crypto expert, Cardano had just broken through the descending resistancein its Falling Wedge pattern.  Related Reading Analyst Puts Bitcoin Price Ceiling At $137,000, But Is This The Highest BTC Can Go? 22 hours ago

This move is typically seen as a bullish signal, as the Falling Wedge chart pattern is often associated with positive trend reversals. The Falling Wedge patternis a unique technical indicator that occurs in an upward trend. It is characterized by two descending trend lines, with one representing highs and the other lows.

The crypto analyst has stated that Cardano’s price is approaching a distinctive level, which he calls a “demand zone.” If it can experience a strong rebound from this point, Cardano could start its anticipated upward trendat this crucial level. 

The demand zone at $0.0313 acts as a vital support level where there’s likely to be buying interest. If Cardano can experience a bounce from this point, the cryptocurrency could rally and break outabove the $0.417 resistance level, strengthening the analyst’s bullish scenario while hinting at higher resistance targets. 

The market expert discloses that when Cardano breaks the $0.417 resistance, there could be a notable shift in its present market structure. Notably, Cardano has experienced slow growthand muted market performance over the past few years.

Due to the cryptocurrency’s low price and sluggish momentum, many investors have voiced out frustration previously, with some tagging ADA a dead coinand others alleging that Cardano is a ghost chain. However, recently, Cardano has been on a bullish trajectory, as its price has been experiencing significant gains over the past few weeks.

According to data from CoinmarketCap, the Cardano price is trading at $0.434, marking a 17.29% increase in the past 24 hours and a 27.84% rise over the past week. The cryptocurrency’s daily trading volumeis also up by more than 65%, underscoring investors renewed interest and confidence in the altcoin.  Potential Risks If ADA Fails To Hold Key Support Levels

TheCryptoParadise has revealed on TradingView the downside risks that could occur if Cardano fails to hold the aforementioned critical support levels at around $0.313. The analyst emphasized that if the Cardano price fails to hold above the $0.313 level, it might experience a steep declinetoward the critical support zone between $0.274 and $0.290. Related Reading Dogecoin Price Looking To Close Weekly Candle Above The Yellow Line, Why $10 Is Possible If This Happens 1 day ago

The analyst has disclosed that this support zone is an important price floor where buyers could step in to prevent further price decreases. He also highlighted that ADAwill need to reclaim the $0.313 support to maintain a bullish outlook. However, if it closes a day below $0.274, it would most likely invalidate this bullish scenario, increasing the risk of further price declinesand possibly even setting a new low.  ADA price at $0.43 | Source:ADAUSDT on Tradingview.com Featured image created with Dall.E, chart from Tradingview.com