Cardano price poised for 70% surge as it moves within wedge pattern

T – 1d Chart
A bullish breakout from this resistance is crucial for buyers to exit the current market correction.
However, if the overhead selling pressure at $0.7 persists, the coin price will drive short-term consolidation to build sufficient bullish momentum.
Technical Indicator:
Exponential Moving Average: the cluster of daily EMAs (50, 100, and 200) at $0.7 creates a high-selling zone for crypto traders.
Relative Strength Index: Contrary to the lower low formation in price action, the momentum indicator RSI shows a higher low formation, indicating the rising buying pressure channel support.
The recent surge in Cardano’s price comes after a period of market correction, as global trade negotiations brought renewed optimism to major cryptocurrencies, with Cardano benefiting from this positive sentiment. ADA, the native cryptocurrency of the Cardano blockchain, has seen a significant bounce from its multi-month support within a wedge pattern, hinting at a potential reversal in its price trajectory.
Over the past four days, Cardano’s value has risen from a low of $0.51 to its current trading price of $0.606, marking an impressive 18.8% increase. This upward movement was particularly notable on Wednesday following news that U.S. President Donald Trump had granted a 90-day pause on trade retaliation measures for over 75 countries, along with a reduction in reciprocal tariffs to 10%.
Notably, the surge in ADA’s price indicates a positive shift from the support trendline of a falling channel pattern that has constrained the coin’s price since December 2024. The reliability of this pattern in influencing price movements is evident, with previous reversals from this support leading to substantial recovery trends ranging from 53% to $102. If historical patterns repeat themselves, Cardano could potentially surge by 70% and face the challenge of breaking through the pattern’s resistance near $1.
A crucial breakout from this resistance level is essential for buyers to navigate the current market correction successfully. However, if selling pressure persists at the $0.7 mark, the coin’s price may experience short-term consolidation to establish stronger bullish momentum. Traders are advised to monitor the Exponential Moving Average cluster at $0.7, which signifies a significant area of selling interest, as well as the Relative Strength Index, which highlights the increasing buying pressure evident in the price action despite recent lower lows.