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According to Gowanus Monster in a recent poston X, Cardano (ADA) appears to be carving out an inverse Head and Shoulders (H&S) bottom formation on the daily chart—an increasingly credible signal that could mark a major shift in its price trend. This bullish reversal structure, which features a lower low (head) flanked by two higher lows (shoulders), is typically seen near the end of a downtrendand often precedes a sustained upside move.
If the price continues to respect the formation and approaches the neckline with increasing volume, it could set the stage for a breakout. Such a move would serve as a strong bullish confirmation and may kick off a meaningful upward trend. Neckline Break Confirmation: The Key To Validating The Bullish Reversal
One of the most crucial elements underscored in the Gowanus Monster detailed analysis is the well-established downtrend that precedes the formation, an essential criterion for a valid bullishreversal. Related Reading Cardano (ADA) Bulls Push for Breakout — Is a Sharp Rally Next? 4 days ago
Adding further credibility to the setup, Gowanus Monster pointed out the notable symmetry of the pattern. The left and right shoulders are well balanced in height and duration, a classic trait of a bottom. This kind of proportionality enhances visual clarity and increases the likelihood that the pattern will resolve to the upside. Historical data shows that symmetrical structures often have higher breakout success rates, which strengthens confidence in this particular scenario for Cardano. H&S pattern points to a Cardano rally | Source: Gowanus Monster on X
He also emphasized the importance of the outer neckline, currently positioned near the $0.774 level. This key resistance zoneis even more significant because it aligns with the 200-day moving average. The convergence of the neckline and the 200MA creates a technical inflection point that could determine the next phase of ADA’s price action.
According to Gowanus Monster, a daily close above the neckline and the 200-day MA would confirm the inverse Head and Shoulders pattern and serve as a strong breakout signal from bearishto bullish. Until that confirmation occurs, traders are advised to stay alert and watch how ADA behaves around this pivotal level, as failure to break through could delay or invalidate the bullish scenario. Inverse Head And Shoulders Price Target For Cardano
Conclusively, Gowanus stated that once this breakoutis confirmed, it could result in a potentialupside target near the $0.98 mark. This level isn’t arbitrary; it reflects the approximate height of the pattern added to the breakout point, offering a realistic price objective based on historical chart behavior. Related Reading Cardano Price Could Be Set For 100% Rally As This Bullish Triangle Has Formed On The Daily Timeframe 1 month ago
Reaching $0.98 would mark a significant recoveryfrom Cardano’s recent lows and attract renewed investor interest. Such a move may re-establish bullish sentiment in the Cardano dynamics, particularly if it coincides with rising volume and improving market conditions. ADA trading at $0.70 on the 1D chart | Source: ADAUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com