Date: Wed, March 12, 2025 | 07:59 AM GMT
The cryptocurrency market is attempting a recovery ahead of today’s CPI data release after enduring a week-long correction. Ethereum (ETH) has dropped over 13% in the past seven days, putting immense pressure on the broader altcoin market.
Amid this downturn, Cardano (ADA) has taken a significant 21% hit over the past week. However, despite the sharp decline, ADA is showing early signs of a rebound after holding a key support.
Descending Broadening Wedge Setup
On the daily chart, ADA has been trading within a Descending Broadening Wedge pattern, which has been in play since its rejection from $1.32 on December 3. Since then, ADA has been making a corrective move, forming lower highs and lower lows inside this structure.
After a fake breakout attempt, ADA dropped to $0.58 earlier this week but managed to hold the key support of 200-day moving average (marked in circle area). The price has since rebounded to $0.74, as highlighted in the chart. A strong bounce from this level could push ADA toward the upper resistance trendline of the wedge around $0.90. If it manages to break out from this pattern, it could trigger a bullish move in the coming days.
On the flip side, if ADA fails to hold this support level, further downside pressure could push the price lower, with the next key support level sitting below $0.58.
The MACD is showing early signs of a possible bullish reversal. The MACD line is attempting a crossover above the signal line, which could be an early indication of a shift in momentum. If this crossover gets confirmed, it may provide additional strength for ADA’s price recovery.
Final Thoughts
Cardano is currently at a make-or-break level, where a successful bounce could set the stage for a bullish breakout. The descending broadening wedge pattern suggests a potential reversal, but confirmation is still needed. If ADA climbs above $0.90, it could invalidate the bearish structure and regain bullish momentum. However, if the price breaks below $0.58, it may extend its downtrend.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making any investment decisions.