Cardano Price Prediction: ADA on the brink of explosive move to $2.4

Cardano

Cardano has been nurturing an uptrend since the initial downswing to $1 in May. The first recovery attempt almost brushed shoulders with $2, but another correction ensued almost immediately. The cat and mouse game continued between the bears and the bulls, with the resistance at $1.8 capping movement. On the downside, bulls have kept growing more assertive, explaining the higher low pattern on the four-hour chart.

Cardano draws nigh to an ascending triangle breakout

The upcoming smart contract token has kept investors’ interest on the roof, particularly with all the developments on the network. Note that the horizontal resistance at $1.8 formed the ascending triangle’s x-axis. Similarly, the higher lows formed the hypotenuse, implying that bulls are gaining traction.

An ascending triangle is a highly bullish pattern in technical analysis. Eventually, a breakout occurs before the trend lines converge. Low volumes characterize the period of consolidation within the triangle. However, a surge in trading volume marks the breakout, as bulls take advantage of the expected upswing toward $2.4.

ADA/USD four-hour chart

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ADA/USD price chart ADA/USD price chart by Tradingview

Cardano’s uptrend has been affirmed by short-term bullish signals from the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI). The former recently returned to the positive region while the MACD line maintains the divergence above the signal line.

Subsequently, the RSI almost hits the overbought region, hinting at an intense bullish grip. Therefore, a break above $1.8 (triangle’s x-axis) may catapult Cardano toward the target of $2.4.

Cardano intraday levels

Spot rate: $1.75

Trend: Bullish

Volatility: High

Support: $1.6, $1.3 and $1.3

Resistance: $1.8 and $2.2

The post Cardano Price Prediction: ADA on the brink of explosive move to $2.4 appeared first on Coingape.

Publication date: 
06/02/2021 - 07:03
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