The ADA price has been drifting near $0.23 for what feels like forever, but a new analysis from an expert trader shared by TheCryptoBasic calls Cardano a ticking time bomb. That sounds dramatic until you pull up the weekly chart and see exactly what they mean. 

The ADA price is sitting at the lower boundary of a four year horizontal channel, and a descending trendline is squeezing into that same spot. Something has to give, and soon.

We had a look at the ADA weekly chart shared by TheCryptoBasic, and the structure is undeniable. The ADA price has been bouncing between roughly $0.23 on the bottom and $1.18 on the top for four straight years. That is an enormous horizontal channel, and every single time price has touched that lower boundary near $0.23, a strong move followed. 

Right now, the ADA price is trading at $0.25, basically right on top of that support zone. But there is more. A descending trendline has formed inside this channel, connecting lower highs over the past few years. That trendline is now crashing into the same horizontal support at $0.23. This is the tightest spot in years.

#Cardano Is a Ticking Time Bomb: Expert Trader.

Mintern, the self-acclaimed chief meme officer of Minswap DEX, shared a price outlook from an unidentified “expert trader”.

This analysis predicts that this price expansion will occur this week, as ADA has no other possible price… pic.twitter.com/6c0YTuM5G8

The trader’s analysis says the ADA price has no other possible move than a breakout or a breakdown. That is what happens when two major lines converge. The price gets compressed until it pops one direction or the other. 

The analyst favors the upside, and the target is aggressive: $1.20 by the end of this week. That would be a move of over 400% in just a few days. It sounds crazy, but the chart has done similar things before. In 2021, the ADA price ran from this same zone up to $3.10. A move to $1.20 is actually smaller than previous expansions.

Read Also: Crypto Price Prediction for Today, April 10: XRP, Kaspa (KAS), Bitcoin (BTC)

The timing matters here. The weekly chart shows that previous touches of this lower boundary led to immediate reversals. The ADA price is currently down 3.39% on the week, but volume is light, which often signals exhaustion among sellers. 

The descending trendline has been pushing price down for months, but now it meets a brick wall of support at $0.23. The trader behind this call expects the breakout to happen this week specifically, not next month or next quarter. That is a bold claim, but the structural setup supports it.

If the ADA price breaks that descending trendline to the upside, the first real test is $0.50, then $0.80, then the channel top near $1.18. The $1.20 target lines up almost perfectly with that upper boundary. A breakdown below $0.23 would be ugly, no question. 

But the four year channel has held that level multiple times. Each previous test led to a violent bounce. 

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The post Crypto Expert Calls Cardano (ADA) a Ticking Time Bomb – Here’s Why appeared first on CaptainAltcoin.

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