Peter Smith
Cardano's ADA token is showing promising signs of a major rally as technical indicators align for what could be a substantial price movement. The daily MACD has recently crossed upward, creating a bullish signal that traders are watching closely. This technical setup, combined with key support and resistance levels, suggests ADA might be positioning itself for one of its most significant moves in recent years. The last time similar conditions appeared was in August 2021, which preceded one of Cardano's strongest rallies in its trading history.
Technical Setup Points to Potential Breakout
As noted by trader Mr Brownstone, ADA's daily MACD has curled and crossed upward, creating a classic bullish signal that often leads to strong price rallies. This move suggests ADA could be entering the third wave of an Elliott Wave pattern, which is typically the most powerful and explosive phase of any rally cycle.
The current chart structure shows ADA testing critical levels that will determine its next major direction. Support sits firmly at $0.68, and this level must hold for the bullish scenario to remain intact. A breakdown below this point would likely invalidate the setup and could lead to further downside pressure. On the upside, a decisive break above $1.18 would confirm the bullish continuation and likely target the $1.50 to $1.70 range for the next rally phase.
Wave 3 Potential and Market Outlook
If ADA successfully clears the resistance zone, Elliott Wave analysis projects a strong third wave extension that could send prices significantly higher. This would also push the MACD indicator to new highs, potentially surpassing the momentum levels witnessed during the 2021 bull market cycle.
The combination of bullish MACD momentum, solid support at $0.68, and a clear breakout trigger at $1.18 suggests Cardano may be preparing for its most significant rally in years. Should the third wave pattern unfold as expected, ADA could revisit its former highs and potentially establish the foundation for a new bullish cycle that extends well beyond current price levels.
Peter Smith
