ADA Nears Breakout After Nine Years of Price Compression

Cardano's ADA is currently testing its long-term resistance line after nearly nine years of price compression. The token, which has been trading at $0.2478 as of press time, is still far below its all-time high of $3.09 reached in September 2021.

This represents a decline of 92.1% from its peak, and the long-term chart shows ADA repeatedly holding a rising support line, apart from the sharp disruption during the COVID-19 crash. A descending resistance line from the 2021 peak has capped rallies, forming a narrowing wedge between the rising floor and falling ceiling.

According to Van Tassel, the current setup does not confirm a breakout. A weekly close above resistance followed by a successful retest would provide confirmation, with the former ceiling needing to hold as support.