Cardano Price Analysis: ADA/USD inverted H&S pattern spotted as bulls’ eye $0.15
|- Cardano remains the focal point for investors as the staking launch draws nigh.
- ADA/USD bulls are unrelenting in the fight for $0.15 despite the hurdles at $0.13 and $0.14.
Cardano has managed to keep sentiments towards it positively among investors. The launch of the Shelly protocol remains Cardano’s biggest achievement in more than five years. The much-awaited staking feature has investors waiting with bated breaths. Staking allows users to lock their tokens within the network. The tokens are used to secure the network while users earn rewards (passive income) in return.
Last week, Cardano consistently rose to $0.1386 but failed to clear the resistance at $9,400. The reversal that followed saw Cardano plunge towards $0.10. Buyer congestion at $0.11 stopped the losses and forced ADA/USD back into a bullish trajectory that resulted in the formation of an inverted head-and-shoulders (H&S) pattern.
The impact of the H&S pattern contributed greatly to the recovery that pulled Cardano above $0.13. At the time of writing, ADA/USD is trading at $0.1302 while the ongoing bullish action is supported by the RSI and the MACD.
The RSI in the 1-hour range is holding the position above 70 after climbing to 77.55. As long as the RSI holds in the overbought region, then gains towards $0.14 are likely in the European session on Monday. The MACD also shines the light onto the ongoing bullish momentum as it moves higher within the positive region.
On the flip side, the overbought RSI could also signal a reversal. However, it very unlikely that ADA/USD reversal would cause a lot of damage considering the high investor interest. Besides, support is anticipated at $0.1275 the 50 SMA at $0.1235, $0.1225 and $0.12.
ADA/USD 1-hour chart
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