Cardano (ADA) Price Jumps 2.1% as US Trade Officials Engage With Other Countries to Negotiate New Agreements

The bullish uptick followed broader market buying pressure, as United States trade officials are actively engaging with other countries to negotiate new trade agreements.

The Cardano price edged up 2.1% in the past 24 hours to reach its current trading price of $0.62. The slight bullish shift followed broader market buying pressure, as United States trade officials are actively engaging with other countries to negotiate new trade agreements.

Amid the shift in macroeconomic affairs, the ADA price analysis revealed the formation of a renowned bullish reversal pattern, signaling an opportunity for a new bullish trend.

Falling Channel Pattern Hints at Recovery Potential

In the last two weeks, the Cardano price has Interestingly, the reversal occurred at the bottom trendline of a falling channel pattern in the daily chart. Since late November 2024, the chart setup has carried the current correction within two parallel trendlines, which acted as dynamic resistance support.

Historically, a reversal within the channel pattern has led to a recovery ranging from 62% to 102%. Though a complete reversal will take some time, the chances of a rebound are higher.

Cardano Price Hints Major Breakout From InH&S Pattern

A deeper analysis of the 4-hour chart shows the recent recovery has developed into a bullish reversal pattern called an inverted head and shoulders.

The pattern is characterized by three key troughs. The left shoulder forms as the price declines to a local low and then rebounds slightly. Following this, the head forms with a deeper decline, marking the lowest point in the pattern before another recovery. Finally, the right shoulder develops, creating a higher low compared to the head, suggesting that sellers are losing momentum.

With today’s jump, the Cardano price is just 2% away from challenging the neckline resistance of $0.63. A potential breakout will accelerate the buying pressure and bolster buyers to extend the recovery past $0.8.

On the contrary, if ADA buyers fail this breakout, the coin price will revert lower and prolong consolidation above the bottom support trendline.

News data source: kdj.com

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