• Cardano trades near $0.64, facing pressure below major moving averages but holding above long-term support.
• Momentum indicators show weakness, though MFI suggests steady accumulation.
• A breakout above $0.70 could set ADA’s next major target at $2.70.

Cardano (ADA) has been moving inside a broad wedge channel for several years, showing clear respect for its upper boundary while repeatedly rejecting upward breakouts.

As of October 23, ADA trades around $0.641, marking a weekly decline of 1.84% on Binance. The current setup indicates that Cardano remains in a long consolidation phase, preparing for a potential expansion once momentum returns.

This compression within the log channel highlights the long-term struggle between buyers and sellers. Over the years, each attempt to breach the higher range has been met with rejection, keeping the token locked in its cyclical rhythm.

The next major target for this formation, once broken, stands at $2.70 per token, a level that aligns with previous resistance from the 2021 cycle.

Also Read: Cardano (ADA) Holds $0.63 While Market Prepares for Next Wave

Technical Setup Reflects Bearish Pressure with Hidden Strength

From the one-week chart, ADA has fallen below its 50-week EMA ($0.726) and 100-week EMA ($0.665), indicating weakness in the medium-term market.

But the 200-week EMA at approximately $0.596 acts as a strong level of support for the token. Historically, this level has been a strong place of accumulation for ADA.

If the token can hold above this level of 200 weeks, it can form a strong base before moving towards a recovery. A fall below $0.596 could unlock a fall to the levels of $0.55-$0.50.

This pattern can be turned around by a break above the levels of $0.67-$0.70. This level can serve as a launchpad for further buying.

Momentum indicators further reveal a mixed trend. RSI is at 43.17, which is slightly lower than the middle level but nearing oversold regions with weak buying support.

MACD has turned negative with a bearish crossover; however, its flat trend indicates that the selling pressures may subside sooner.

Cardano Builds Momentum for a Potential Breakout

Despite this weakness in price, the on-chain and technical indicators affirm a medium level of inflow. The Money Flow Index (MFI) stands at 55.21.

This means that ADA continues to be bought by investors near its support levels. A level above 50 signifies a good amount of investment inflow into this asset despite a conservative market sentiment.

This accumulation pattern tracks the previous cycles of ADA by following a similar pattern of MFI trends before mid-term corrections. ADA can build a strong foundation for its next leg up as long as it remains above $0.60.

If the bullish trend continues, ADA may test the resistance levels of approximately $0.76 again and target higher levels of $2.70 to touch the upper boundary of a long-established ‘wedge pattern.’ Currently, the ADA price remains consolidated and is gaining latent energy for a breakout.

Also Read: Cardano (ADA) Up 150% Since 2023 Low, Eyes New High by 2026