In technical analysis, experts note that on the daily chart ADA is forming a clear bullish structure. The price is shaping a visible “W” pattern which, if market strength continues — especially with stable Bitcoin performance — could fully play out. In this case, a move toward the 50-day and 200-day EMA levels appears realistic. In the same area lies a red vector zone that may serve as a potential target for further upward movement.
Technical indicators support this positive outlook:
- MACD (Moving Average Convergence Divergence) shows that negative momentum is almost gone, with a transition into positive territory — a classic bullish signal.
- RSI (Relative Strength Index) has crossed its midpoint upward and remains above the 50 mark, indicating strengthening bullish momentum.
The heatmap also provides confirmation: the price is moving toward upper liquidity zones, suggesting that short liquidations are expected at higher levels. Below the current price, a liquidity cushion has formed from many open long positions, which may attract price action in case of a pullback. Overall, the setup looks like a solid bullish structure. As long as Bitcoin remains stable, the chances of a full W-pattern formation and ADA’s rise toward higher EMA levels remain high. The key confirmation factor will be trading volume supporting the breakout.
4-hour chart: critical moment at the 50 EMA
On the 4-hour chart, Cardano stands at a crucial technical point. The price must now show strength and break above the 50 EMA to confirm further upward momentum. A successful breakout above this zone would be the first signal for a continued bullish trend.
Subsequent price action will depend on whether the market can maintain support during a possible retest of the 50 EMA. If it holds, the recovery could continue, targeting the next resistance zone near the 200 EMA.
However, if ADA fails to sustain the structure, there is a risk that the ascending triangle pattern will break downward, leading to short-term bearish pressure before the market finds new direction.
The liquidation levels indicate a decreasing short delta, meaning that short positions are being closed and the market is gradually shifting toward a neutral balance. This behavior usually precedes a consolidation phase before a new trend forms.
In conclusion, Cardano (ADA) is at a key crossroads:
- A breakout and consolidation above the 50 EMA would confirm a bullish scenario and signal potential further growth.
- A breakdown below would invalidate the current formation and trigger short-term selling pressure.