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July 20, 2025, 11:56:14 PM |
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Cardano has been quietly gaining strength over the past few weeks, and many traders are now watching it closely for a potential breakout. Here’s why this might be a key moment for ADA — especially if you're following price action and technical trends.
🧠 Key Technical Signals:
1. Double Bottom Pattern:
ADA formed a textbook double bottom around the $0.50-$0.51 level — often a bullish reversal signal. The neckline sits around $0.86–$0.88, which it's now testing.
2. Triangle Breakout:
A symmetrical triangle that had been consolidating since May just broke to the upside — with strong trading volume to back it up.
3. Golden Cross Across EMAs:
The 20, 50, 100, and 200-day moving averages have aligned in a bullish configuration, often called a "golden cross," which typically signals a strong upward trend.
4. Momentum Indicators:
RSI is holding above 60 — bullish, but not yet overbought
MACD just flipped positive on both the daily and weekly timeframes
5. On-Chain Growth:
ADA’s total value locked (TVL) in DeFi has been rising steadily. This supports the idea that users are returning to the ecosystem — not just speculators.
📊 Key Levels to Watch:
Current Price:~$0.86
Resistance to Break:$0.86–$0.88
Bullish Target: $1.20–$1.25 (measured from double bottom breakout projection)
Support Zone: $0.75–$0.78
Invalidation Point: Below $0.72
🔎 So, is ADA a buy right now?
It depends on your risk profile. If ADA breaks and holds above $0.88 with volume, it could be a high-probability setup for a move toward \$1.20. However, if it gets rejected at resistance and falls below $0.75, it might need more consolidation before the next leg up.
Many traders are seeing this as a "make or break" moment — the structure looks clean, but confirmation is everything.
💬 What do you think?
Do you believe Cardano can rally past $1.00 this quarter? Or are we headed for another rejection at resistance?
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