Cardano had an interesting last week whereby it rose into the fifth spot on the market despite the freefall in price. The staking platform boasts of a market cap of $48 billion and trails immediately behind Binance Coin.
The trading last week was gruesome not only for ADA but the entire crypto market. From the recently traded all-time high of $2.5, ADA plummeted to the support at $1.1.
However, the downswing appears to have allowed more investors to enter the market at a lower price, explaining the reflex recovery to $1.6. Moreover, a highly bullish pattern is formed on the chart and is likely to bolster Cardano significantly.
Cardano bulls focus on sustaining a falling wedge pattern breakout
The recovery included the breakout from the falling wedge pattern stalled within a whisker of brushing shoulders with $1.6. Perhaps the overhead pressure came from the resistance at the 200 Simple Moving Average.
It is apparent that bulls are fighting to hold at higher support, a move that ensures that buyers the uptrend is not sabotaged. The falling wedge is a highly bullish pattern, with a target at $2.2.
Meanwhile, Cardano must bring down the resistance at the 200 SMA on the four-hour chart and close the day above $1.6 to validate the anticipated liftoff. The Moving Average Convergence Divergence (MACD) has a bullish outlook, cementing the prevailing technical picture.
ADA/USD four-hour chartRead more
ADA/USD price chart by Tradingview
Looking at the other side of the picture
The Relative Strength Index (RSI) emphasizes the growing overhead pressure following the rejection at $1.6 and the 200 SMA. Its retreat below the midline is a vivid bearish picture that cannot be ignored. Therefore, investors should be prepared for the bearish leg to extend to $1.4 and $1.1 levels, respectively.
Cardano intraday levels
Spot rate: $1.5
Trend: Short-term bearish bias
Support: $1.4 and $1.1
Resistance: The 200 SMA, $1.6 and $1.8
The post Cardano price technical breakout sets out for 60% rally eyeing $2.2 appeared first on Coingape.