Victoria Bazir
Cardano (ADA) is displaying early indicators of a bullish shift following an extended consolidation period. Recent technical analysis points to a pattern suggesting the asset may have reclaimed upward momentum, backed by a decisive break above its descending trendline and fresh local highs forming near $0.69.
Technical Overview: Reversal Pattern Signals Strength
The 4-hour chart shows a well-formed inverse head and shoulders pattern — a textbook reversal signal — that's emerged over the past week. Trader Sssebi's analysis highlights this structure, which features a deep head around $0.61 and two shoulders between $0.63–$0.64, followed by a breakout through the descending trendline connecting recent lower highs.
Following this reclaim, ADA pushed to roughly $0.69, establishing a new local peak and confirming a near-term transition from bearish pressure to accumulation. Price action now sits above a rising 50-period moving average, while the RSI hovers above 55, indicating sustained positive momentum without reaching overbought levels yet.
Market Setup: Retest Before Next Move
Despite the constructive trend, ADA might revisit the broken trendline around $0.66–$0.67 before launching a stronger push higher. This zone now functions as dynamic support and could provide an optimal foundation for additional upside.
The next resistance sits at $0.71, matching the previous swing high from early October. A solid close above this level would likely confirm continuation toward the next major resistance band between $0.75–$0.77.
Broader Context: Altcoin Confidence Returns
ADA's technical improvement coincides with renewed risk appetite throughout the crypto market. Bitcoin's consolidation near upper range levels has encouraged capital rotation into large-cap altcoins, with Cardano appearing among the early beneficiaries.
Continued development within the Cardano ecosystem and expanding staking participation have bolstered investor confidence, supporting the coin's gradual recovery from multi-week lows.
Key Levels to Monitor
- Support: $0.66–$0.67 (trendline retest zone)
- Immediate resistance: $0.71
- Extended target: $0.75–$0.77
- Invalidation zone: Below $0.64
Building Momentum
Cardano's current chart formation suggests a clear trend reversal, with the inverse head and shoulders pattern and trendline recovery providing strong technical confirmation. If support around $0.67 holds firm, ADA could advance toward $0.71 and potentially higher in coming days. Market participants are monitoring whether Cardano maintains momentum above its short-term moving average, which would strengthen the case for a broader uptrend extending into November.
Victoria Bazir
