Cardano has risen nearly 23% over the past three days.
After breaking past the $0.45 resistance level, ADA appears to be targeting a higher high.
Technical indicators suggest ADA could rise up to 51% if the rally continues.
Share this article
Cardano appears to be gaining bullish momentum after overcoming a significant supply wall. Technical indicators suggest that as long as ADA continues trading above $0.50 it may have the potential to advance further.
Cardano Turns Bullish
Cardano has breached a critical area of resistance, potentially signaling the beginning of a new uptrend.
ADA has seen its price increase by nearly 23% over the past three days after enduring a three-month-long consolidation period. The sudden upswing was triggered shortly after Cardano sliced through the $0.45 resistance level. Further buying pressure could push ADA towards higher highs as the most significant supply barrier looks to have been breached.
Cardano appears to have broken out of descending triangle on its 12-hour chart. This technical formation anticipates that ADA could rise as much as 51% after overcoming the $0.45 resistance level. If validated, the formation indicates an upside target of $0.70.
ADA/USD 12-hour chart. (Source: TradingView)
However, Cardano needs to hold above the $0.50 support level to have a chance of printing higher highs. Failing to stay above such a crucial price point could be perceived as a sign of weakness, leading to a spike in profit-taking. If this were to happen, ADA could drop to $0.45 or even go as low as $0.38.
The upward price action seen recently coincides with the rally Ethereum has experienced over the past few days after weeks of sluggish price action. Other Layer 1 networks like Solana, Avalanche, Fantom, and NEAR have also increased in market value as the crypto market starts to show signs of life. It remains to be seen whether the overarching macroeconomic weakness that has weighed on risk-on assets in recent months will continue to affect the crypto market going forward.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.