Cardano Hack Fears Grow – Will ADA Break Down Next? | Credit: Hameem Sarwar
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Key Takeaways
Cardano consolidates below its yearly high, signaling a potential breakout ahead.
The MFI and CMF indicate growing buying pressure and rising accumulation.
A break above $0.85 and $0.92 could send ADA toward the $1.02 target.
Cardano’s (ADA) rally has paused, but it has not ended. After a powerful surge between July and August, ADA is consolidating below its yearly high.
Although the consolidation has taken some time, it does not appear that Cardano’s price will fail to produce another breakout this year. Bulls remain confident, and indicators suggest that the sideways trend may soon come to an end.
Cardano Consolidation Nears End
On the 4-hour chart, Cardano’s price appears to be gearing up for a potential breakout.
The altcoin has spent several days trading within a falling channel, forming consistent lower highs and lower lows — a pattern that typically signals exhaustion among sellers.
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However, ADA is now flirting with the upper boundary of this channel, hinting that bullish momentum may be building for a move higher.
Adding to this optimism, the Money Flow Index (MFI), which previously touched oversold territory, has now broken above its descending trendline. This indicates buying pressure is beginning to outweigh selling pressure.
If this trend continues, it could propel ADA’s price above the current channel resistance.
That said, the red line of the Supertrend indicator remains positioned above the price. This Supertrend position indicates that strong resistance is likely to be encountered near $0.85.
To confirm a bullish reversal, ADA must produce a close above this Supertrend level and the upper trendline.
If successful, Cardano’s price could rally toward $0.92, with the next key target above the $1 mark.
ADA Price Analysis
Cardano’s price reinforces the bullish setup on the daily chart, as well as on lower timeframes.
The price action has carved out a cup and handle pattern.
The “cup” represents a gradual rounding bottom formed as sellers lost momentum and buyers began to regain control.
The “handle”, on the other hand, shows a brief consolidation phase before a potential breakout.
Together, this pattern shows up before a strong upward move once resistance at the handle’s upper boundary is breached.
Adding strength to this outlook, the Chaikin Money Flow (CMF) has retested the zero signal line, showing that capital outflows have slowed and inflows are beginning to return.
If the CMF successfully pushes higher into positive territory, it would confirm accumulation and rising buying pressure.
If momentum continues to build, ADA’s price could break above the neckline around $0.92, potentially targeting $1.02 in the coming days.
However, if the CMF fails to hold above zero and buying pressure wanes, Cardano may remain range-bound between $0.77 and $0.82 before attempting another upward push.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
