Cardano Price Breaks Down From Ascending Channel, Here Are Two Ways It Could Go

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A crypto analyst has confirmed a recent breakdown of the Cardano pricefrom an Ascending Channel pattern. With key support and resistance levels now in focus, the analyst has outlined two scenarios for ADA, projecting where its price could move next.  Cardano Price Ascending Channel: Bullish Scenario

The Cardano price has been trending within an Ascending Channel for some time, maintaining steady price momentumamidst market volatility. However, a TradingView crypto analyst, known as ‘MelikaTrader94’, has identifieda recent change in the Cardano price action. The analyst highlights that the altcoin has broken below the Ascending Channel, indicating a possible shift in market sentiment. Related Reading Cardano Price Bounces From Key Support Level, But There’s Still A Risk To Crash To $0.85 1 week ago

An Ascending Channelis a distinctive chart pattern formed by two upward-sloping parallel trend lines. This pattern is typically considered a bullish continuationsignal, often indicating the potential for a price reversal or deeper correction. 

Based on the TradingView analyst’s report, Cardano’s recent breakdown from its Ascending Channel could give rise to two possible scenarios. Firstly, the analyst predicts that the price of Cardano could experience a bullish surge, driven by the momentum generated from the channel breakdown.  ADA forms ascending channel pattern | Source: MelikaTrader94 on Tradingview

The analyst shared key support and resistance levelsto watch, highlighting that a breakout about resistance could confirm a bullish reversal. Interestingly, the Cardano price has already broken below the key support level of around $0.7765. The cryptocurrency is now testing lower regions to find its next critical support. 

The TradingView analyst predicts that if the price of ADA can reclaim the support levelat $0.7765, a retest to higher levels may be imminent. He has set a bullish target for ADA between $0.95 and $1.00, signaling the start of a strong uptrendand a potential price discovery. He also highlighted new resistance levels between $0.7765 and $0.80 for the price. Bearish Scenario: Further Decline Toward 0.2910 Fib?

In an alternative scenario, MelikaTrader94 has shared a bearish outlook for the Cardano price. The price of Cardano is already in a severe downturnafter crashing by 23.3% over the past week. Despite this bearish performance, the TradingView analyst predicts that ADA could see further downward momentum, declining towards the 0.4836 and 0.2910 Fibonacci levels if it fails to hold current levels.  Related Reading Cardano Price Eyes Breakout To $6 After Bouncing From 43% Drawdown 2 weeks ago

The TradingView expert has pinpointed new support levelsaround $0.63, $0.48, and $0.29. These price points act as a barrier for the ADA, potentially preventing further declines. The analyst also disclosed that these support levels will serve as significant demand zones where buying pressure is set to increase.

Given the possibility of a further breakdown in the ADA’s price, the analyst has cautioned investors to closely monitor ADA’s price action, particularly around the $0.63 level, as this could confirm the cryptocurrency’s next move. ADA trading at $0.75 on the 1D chart | Source: ADAUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com