Cardano (ADA) price prediction: Successful breakthrough of the 0.85 USD barrier, a potential bullish trend is forming.

The price of Cardano (ADA) has surpassed the $0.85 mark, which may confirm a bullish breakout that is forming on the 4-hour price chart. This breakout stems from a technical pattern known as a "falling wedge". Analyst Ali Martinez notes that this pattern typically indicates a reversal in the price trend, and ADA's current performance aligns with this. Meanwhile, he points out that another altcoin, Solana (SOL), is in a pattern known as an "ascending wedge" that usually signals a bearish reversal.

Cardano Breaks Falling Wedge Pattern

In a new post on platform X, analyst Ali Martinez discussed a technical analysis (TA) pattern that is forming on the 4-hour price chart of Cardano. This pattern is called a "falling wedge," which falls under the broader category of "wedge" formations.

The wedge pattern forms when the asset price fluctuates between two converging trend lines. When the trend lines incline upwards, this formation is called a "rising wedge." Similarly, when the price action moves downwards, it forms a "falling wedge."

The wedge sounds similar to the "triangle" pattern, which also involves converging trend lines, but the key difference between the two is that triangles are typically consolidation patterns, while wedges contain a net upward or downward trend. However, like triangles, the trend lines of the channel act as support/resistance barriers for the price. A breakout from either boundary could indicate that the trend will continue in that direction.

Typically, wedges are considered more likely to lead to trend reversals. A falling wedge may eventually see the price break above the resistance line, while a rising wedge may end with a breakdown below the support line. Recently, the price of Cardano has been fluctuating within a channel similar to a falling wedge.

When the analyst released the chart, Cardano had begun to show signs of breaking through the falling wedge resistance line. This breakout attempt occurred as the asset price approached the convergence point of the trend line. Near the apex of this pattern, price action occurs within a narrow range, making a breakout more likely. This may have been the situation that ADA was experiencing at that time.

Martinez pointed out in the post that the cryptocurrency must break through $0.84 to confirm a bullish breakout. After that, the ADA price surged further, reaching the level of $0.85. Therefore, if the falling wedge pattern is credible, then the token may indeed be entering a phase of sustainable rise.

Comparison with Solana Model

While the falling wedge pattern is appearing in Cardano, analysts pointed out in an earlier X post that another altcoin, Solana, is experiencing a "rising wedge" pattern.

As shown in the chart, Solana's price has been trading within this rising wedge for several months and is slowly approaching its endpoint. If this pattern is to be a reversal pattern, then Solana may face a bearish breakout.

As of now, the price of Cardano is fluctuating around $0.851, having risen nearly 4% in the past seven days.

Conclusion

The response of Cardano's price to the "falling wedge" pattern provides a bullish signal for the market, indicating that it may be ready to reverse from the recent downtrend. This technical formation contrasts interestingly with Solana's "rising wedge," reflecting the starkly different short-term market structures of the two main alts. Although technical analysis is not 100% accurate, these patterns offer traders important references, suggesting a possible rise path for ADA while also alerting SOL investors to potential risks.