- Cardano consolidates within a symmetrical triangle, with analysts projecting a potential 40% price breakout.
- Large-scale whale sell-offs of 180M ADA tokens contribute to price pressure, stalling ADA’s upward momentum.
- Technical indicators show bearish momentum, but oversold conditions signal potential for a short-term bounce.
Cardano price prediction for January 28, 2025, highlights the token to consolidating within a symmetrical triangle pattern, a precursor to potential volatility. Currently trading at $0.9588, Cardano is at a critical phase, with analysts projecting a 40% price surge if it breaks above $1.06 resistance, targeting $1.27. Despite the broader crypto sell-off affecting the entire US market, Cardano’s focus on real-world applications into sustainability and traceability has kept ADA on investors’ radar.
Symmetrical Triangle Pattern and Potential Breakout
The symmetrical triangle pattern observed on ADA’s chart reflects a narrowing price range, often signaling heightened market pressure and potential volatility.
The price is currently bounded between $0.83 (support) and $1.06 (resistance), setting the stage for a possible breakout. Analysts project a 40% price increase if the breakout occurs, potentially driving ADA toward $1.27.
Despite these optimistic projections, Cardano has faced headwinds in recent weeks. Large-scale sell-offs by crypto whales have significantly contributed to the token’s downward pressure. On-chain data reveals that 180 million ADA tokens were sold by major investors over the past week, further preventing ADA from breaking above its critical resistance at $1.06.
Related: Crypto Market Dip: Key Price Levels for XRP, ADA, DOGE, BNB, and TRX
Technical Indicators Show Mixed Signals
The cryptocurrency is trading below its 20-day ($0.9498), 50-day ($0.9783), and 200-day ($0.9941) exponential moving averages (EMAs), highlighting strong bearish momentum across multiple timeframes. For ADA to reverse this trend, a decisive breakout above these EMAs would be required.
The Relative Strength Index (RSI) currently stands at 44.19, indicating weak momentum. While it has not yet entered oversold territory, the RSI suggests there is still room for further downside before buyers might step in to stabilize the price.
The Moving Average Convergence Divergence (MACD) offers a bit more optimistic signals, with the MACD line positioned just above the signal line, hinting at mild bullish sentiment. However, the diminishing histogram bars suggest that buyer strength is fading, which may limit any significant upward movement in the near term.
Additionally, Bollinger Bands reveal that ADA is trading close to the lower band at $0.87385, suggesting oversold conditions. This proximity raises the possibility of a short-term bounce toward the midline at $0.99396, provided there is an uptick in buying interest.
Related: Cardano Price Prediction: Is This the Catalyst for ADA’s Next Surge?
Outlook: Bearish with Breakout Potential
Cardano’s short-term outlook remains bearish as it struggles to overcome critical resistance at $0.9498.
A failure to hold support at $0.9166 could see ADA testing lower levels at $0.8738 or even $0.7616. However, a breakout above the triangle pattern and strong whale accumulation could shift the sentiment, driving ADA toward its projected $1.27 target.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
