Cardano price technical breakout sets out for 60% rally eyeing $2.2

Cardano-ADA-Goguen-Charles-Hoskinson

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 chart

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ADA/USD price chart 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

Volatility: Expanding

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.

Publication date: 
05/25/2021 - 04:49
Author: 
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The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.