Cardano (ADA) is trading in a narrow range as analysts have cautioned that the price action is poised to break out in the coming days. Market participants are watching important levels in the ADA price as analysts are suggesting a sharp move is imminent.
At press time, ADA is trading at $0.3568, posting a 24-hour trading volume of $380.81 million and a market capitalization of approximately $12.94 billion, according to CoinMarketCap data. The token edged down by 0.68% over the last 24 hours, reflecting short-term hesitation as buyers and sellers wait for a clearer directional signal.
Cardano Price Uncertain as Consolidation Continues
Popular crypto analyst More Crypto Online described that the overall structure of the price movement for the ADA coin in the short term is uncertain, and thus, one cannot determine the next move.
The analyst added that the overall structure does not have a clear directional pattern, and thus, the coin is likely consolidating.
Nevertheless, according to the analyst, this move would need to be sustained for an indication that an upward corrective move is being continued. In an alternative view, such an upside move would suggest that wave c is being completed, suggesting that a short-term bullish move is likely, depending on further price action.
On the negative side, the analyst also added that if ADA falls below this week’s low around $0.346, this will strengthen the case for the bears. In this case, ADA may dip as low as the $0.329 support levels. This will mean that the ongoing dip may not have played out entirely.
He also added that unless ADA can have a strong five-wave move up from here, any bullish alternatives are uncertain.
While the short-term uncertainty is in place, More Crypto Online argued that the overall trend, as identified by the B-wave label, is still the more dominant trend. If Cardano can create yet another low in accordance with the identified trend, it might lay the groundwork to bounce once the next leg of the trend begins to materialize.
Also Read | Cardano Price Outlook: Can ADA Reach $1.20 in January?
Cardano Triangle Signals Imminent Breakout
Further to this technical analysis, another crypto analyst, Ali Martinez, pointed out that Cardano is currently trading within a triangle. Triangle patterns are known to be a catalyst for a strong move in a particular direction once a breakout takes place.
According to Martinez, based on this technical formation, it is likely that a 7% swing in either direction may be witnessed.
Overall, Cardano appears to be approaching a critical decision point, with the price action remaining tight. Analysts are saying a move through the resistance level or the support level in the near sessions will likely determine the short-term direction for the ADA asset class.
Also Read | Cardano (ADA) Slides Into $0.33–$0.36 Zone as Bulls Eye $0.404 Breakout
