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The channel’s lower trendline further aligns with the 50-2W exponential moving average (50-2W EMA; the red wave), offering a double-layered support for a potential rebound.
In previous instances, a bounce from the channel’s lower trendline has triggered a rally toward the upper trendline target. Should the fractal repeat, ADA’s price may head toward $1.40, coinciding with the 1.00 Fibonacci retracement line.
A recovering RSI hovering near neutral territory further supports the short-term bullish structure. Should this positive momentum continue, reclaiming the $1 psychological level seems possible, particularly if macro sentiment remains supportive during the 90-day tariff truce.
But What If Tariff Talks Break Down?
If the trade ceasefire unravels or stalls entirely, downside risks for ADA could accelerate. A break below the ascending channel support would invalidate the bullish setup and potentially expose Cardano to deeper losses, with $0.34 (near the 0.236 Fib level) emerging as the next target.
It’s also worth noting that crypto markets tend to mirror broader equity sentiment.
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