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Cardano Eyes Breakout Above $0.423 as Cup-and-Handle Pattern Forms
⬤ Cardano is showing an interesting technical setup on the 4-hour chart that’s catching traders’ attention. The price action suggests a cup-and-handle formation is taking shape, with ADA currently trading near $0.404. This puts the token right below a key resistance level at $0.423 that has previously blocked upward moves.
⬤ The cup portion of the pattern formed after ADA dropped to around $0.332 before gradually climbing back up. Price has since worked its way back toward the $0.423 zone, which now stands as a major resistance barrier. The handle appears to be developing above $0.387, showing a relatively mild pullback rather than a sharp reversal—typically a bullish sign in this type of pattern.
⬤ If ADA manages to break and hold above $0.423, it would confirm the cup-and-handle pattern and potentially open the door to the $0.517 target—the measured move based on the pattern’s structure. Until that breakout happens though, ADA remains range-bound with support levels at $0.387 and $0.332 serving as important floors.
⬤ The $0.423 resistance zone is particularly significant since it’s been a long-standing ceiling for price. A clean break above it could shift market sentiment in the short term and attract more buyers, while another rejection would reinforce this level’s importance as a barrier. How ADA behaves around this zone will likely determine whether bulls or bears take control of the next move.