Over the last few years, ADA has seen tremendous gains.
If we connect the highs and lows with each other, we can clearly see a parallel channel. With the recent drawdown of the last couple of months, the price has reached below the channel, which would theoretically signal a bearish break out.
However, with crypto's bullishness over the last couple of weeks, we could very well retest the bottom of the channel. If we fail to break through, expect more selling. Ideally for bulls, the price would break through with a big candle and signal a long-term bullish momentum shift.