The Cardano price (ADA) recently broke above its long-standing descending channel, closing above the 200-day EMA for the first time in several months. Although the rally has recently slowed around the $0.72-$0.73 level, showing that upward momentum has momentarily cooled, yet the overall technical setup still remains entirely positive.
Despite the recent ongoing consolidation, especially when viewed in the context of profit-taking across the crypto space. This sideways momentum in ADA seems more like a pause than a reversal.
Also, the underlying indicators also point to more bullish momentum ahead, while the structure built in July remains intact, with support holding firm and accumulation patterns forming. ADA price may still have more upside to explore in the near term.
Breakout In Cardano Price Chart Above Key Averages Signals Strength
As it is evident that the ADA price has handled strong bearishness for months, being trapped inside this downward wedge. But, this time, ADA crypto breaching above its declining wedges was the biggest feat seen in a month on the daily chart. This breach has relieved many investors who were waiting for this moment in ADA.
This move on the ADA price chart isn’t any ordinary move; it’s combined with multiple key factors, which have resulted in developing a crossover in its short-term EMA bands, specifically the 20-day EMA rising above the 50-day EMA. This signals the beginning of a sustained upward phase.
Furthermore, the ADA price breakout and sustaining above the 200-day EMA is itself a key long-term indicator of a northward trend. As in the past 3 months, it struggled to hold above this dynamic level, but it is not the case anymore, and recent performance is evident, which clearly suggests a higher degree of resilience.
Consolidation Near $0.72 Amid Market-Wide Sell-Off
Despite the bullish signals, the ADA price is currently consolidating around $0.72. This pause aligns with a broader pullback in the cryptocurrency market, and Cardano has not been immune to this sentiment.
As long-term investors began to realize profits, the Bitcoin, which recently hit an all-time high of $123.2K, dropped more than 5% to $116.7K.
Nevertheless, this appears to be a healthy consolidation rather than a worrisome reversal, and it has not broken any critical support levels, yet. It is firmly suggesting that the uptrend remains structurally sound.
Accumulation Phase Could Drive Next Leg Higher
From a technical perspective, the current price zone between $0.70–$0.72 could act as a re-accumulation zone. Market participants may use this phase to regain strength before making another push toward $1.10, a psychological and technical resistance level.
Moreover, another post offers further insight. A recent chart shared by Wyckoff Insider comparing ADA/BTC indicates that Cardano is currently pressing against a strong resistance level.
According to the analysis, if accumulation continues and strength rises, ADA/BTC could flip the resistance level into support. Doing so would likely open the door to test the next resistance range in the ADA/BTC pair, which could indirectly support ADA/USD as well.
