Cardano (ADA) has recently demonstrated a robust upward move after completing a prominent W-pattern, surging towards the resistance zone marked by the red trendline. This area represented the initial target for the bullish formation. However, a sharp sell-off across the crypto market—triggered by Bitcoin’s plunge to around $112,000—put pressure on ADA as well, pulling the token down to its 50-day EMA, which coincides with the former neckline of the W-pattern. While this new support zone was temporarily breached, ADA is now attempting to stabilize.
The technical indicators offer some encouragement. The MACD is in the early stages of forming a bullish crossover, hinting at a possible shift in momentum. Meanwhile, the RSI has retreated from overbought territory, providing the room needed for a fresh upward impulse. If ADA holds above the 50-day EMA and Bitcoin avoids another significant downturn, there is a realistic chance that ADA could revisit the red resistance line—and, with sufficient volume, attempt a breakout. Such a move would once again favor the bulls.
Cardano (ADA) daily chart: Key levels and bullish signals. TradingViewShort-Term Outlook: W-Pattern Forms at Central Support
On the 4-hour chart, ADA is displaying another, smaller W-pattern, this time right at the 800-EMA—a region often associated with short-term trend reversals. Following the formation, ADA broke above several moving averages, notably confirming the 200-EMA as a new support after a successful retest. This confirmation strengthens the probability of continued upward momentum in the near term.
However, traders should remain cautious. The MACD is now signaling fading positive momentum, which could foreshadow a slowdown in price action. Additionally, the lower green support zone remains a possible fallback area if ADA fails to extend its rally. As long as both the 800- and 200-EMA supports hold, the technical structure remains constructive and the outlook positive. A decisive break below these levels would undermine the current bullish scenario and make a pullback towards the green zone more likely.