Date: Thu, Jan 23, 2025, 06:04 AM GMT
The cryptocurrency market in January has seen significant fluctuations, driven in part by rising BTC dominance. This metric has climbed from a January 4th low of 56.63% to its current level of 58.62%, prompting corrections across major altcoins , including Cardano (ADA). Over the past week, ADA has dropped over 7% amid this broader market trend, continuing its decline from the heights of its November rally.
Source: Coinmarketcap
Testing the Symmetrical Triangle’s Key Support
Between November and December 2024, ADA delivered an impressive rally, soaring by over 300% and peaking at $1.32. This rapid ascent was followed by a correction, forming a Symmetrical Triangle pattern—a consolidation structure often signaling continuation or reversal depending on the breakout direction.
Cardano (ADA) 1D Chart/Coinsprobe (Source: Tradingview)
Recently, ADA faced rejection near the triangle’s upper boundary at $1.16, triggering a decline toward the triangle’s critical support level. Previously, this support trendline has acted as a key rebound area, and traders are closely monitoring whether the pattern will hold.
As of now, ADA is trading at $0.97, hovering near the lower trendline of the symmetrical triangle.
Indicators to Watch: 75-Day MA and MACD
The 75-day moving average (MA) currently stands as a dynamic support level near $0.96, adding to the confluence at this key support zone. Meanwhile, the MACD (Moving Average Convergence Divergence) indicator suggests mixed momentum, with the histogram showing a slight bearish bias but flattening, signaling potential weakening of the downtrend.
Potential Scenarios
If ADA successfully holds its support level near $0.95, the price may bounce back toward the triangle’s upper resistance, estimated at $1.10. A breakout above this resistance zone could invalidate the bearish structure, paving the way for a renewed bullish rally.
However, failure to hold the current support could push ADA into deeper corrective territory, with immediate targets around $0.85–$0.90.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
