ADA price is forming a rising wedge near the $0.61 resistance, a bearish technical pattern that could signal an upcoming correction if momentum fails.
Summary
- ADA forms a rising wedge, a bearish pattern nearing completion.
- Key resistance lies at $0.61, aligning with Fibonacci and VWAP levels.
- Breakdown below wedge support could send price to $0.51.
Cardano’s (ADA) price action is showing early signs of exhaustion as it approaches a key high-timeframe resistance zone near $0.61. The asset has been forming a rising wedge pattern, a structure often seen before downside corrections. This pattern, coupled with weakening momentum, suggests that ADA may soon face a technical rejection if bullish volume fails to sustain the current uptrend.
ADA price key technical points:
- Bearish Pattern Forming: ADA is trading inside a rising wedge — a typically bearish pattern that often leads to a breakdown once the apex is reached.
- Resistance Cluster: The $0.61 region aligns with multiple confluences, including the 0.618 Fibonacci level, VWAP resistance, and a lower high from the broader market structure.
- Downside Target: If the wedge confirms a breakdown, the next potential target sits around $0.51, the nearest high-timeframe support.
From a market structure perspective, Cardano’s current uptrend appears corrective rather than impulsive. The approach toward $0.61 has been characterized by a gradual grind higher with declining bullish volume, suggesting that buyers are losing conviction as price nears resistance.
The confluence of the 0.618 Fibonacci retracement and VWAP resistance provides significant technical weight to this region. A rejection from this zone could confirm a bearish reversal and set the stage for ADA to establish another lower high, consistent with the broader downtrend that has been unfolding over recent weeks.
If price fails to close above $0.61 on strong bullish volume, traders should anticipate the wedge to break downward, confirming the bearish setup. Such a move would likely accelerate selling pressure, sending ADA back toward $0.51, which previously acted as a support during the last rotation phase.
Conversely, a decisive reclaim above the wedge’s upper boundary and sustained volume inflow could invalidate the bearish setup, paving the way for a potential retest of $0.65–$0.68 levels. However, given the current structure, the bias remains tilted to the downside.
Price action
Cardano’s price is approaching a make-or-break region. A confirmed breakdown from the rising wedge would validate bearish continuation targets, while a reclaim above $0.61 would signal renewed strength. Traders should monitor volume closely, it will determine whether ADA’s next move is a breakout or a breakdown.
