Cardano Price Analysis: ADA at threshold for a 71% move to $2

Cardano has ignored widespread bearish calls and is setting the framework for a colossal breakout. The formation of a technical pattern on the 4-hour chart confirms the impending breakout. ADA is trading at $1.12 while bulls battle the hurdle highlighted by the 50 Simple Moving Average.

Cardano is on the verge of a symmetrical triangle breakout

Cardano has printed a symmetrical triangle on the 4-hour chart. The pattern has no bullish or bearish bias and is created by two converging trendlines. An upper trendline connects a series of lower highs while the other links ascending lows. These lines usually meet at a roughly equal point.

The triangle also signifies a period of consolidation before a breakout breakdown. A breakout occurs when the price jumps above the upper trendline. Triangles are known to have exact targets measured from the pattern’s highest to lowest points.

Cardano is getting ready for a massive liftoff to new record highs around $2. Meanwhile, the resistance at the 50 SMA must come down to pave the way for the potential upswing.

ADA/USD 4-hour chart

The Moving Average Convergence Divergence (MACD) has turned bullish after sending bearish signals for over two weeks. The MACD line (blue) cross above the signal line validates the call to buy. Moreover, recovery into the positive region (above the mean line) will cement the bulls’ position in the market.

Looking at the other side of the fence

It is essential to realize that a symmetrical triangle can also lead to massive losses if the price breaks below the lower trendline. If the 50 SMA resistance remains unshaken, selling pressure may rise, leading to a correction. On the downside, support is highlighted at $0.8, but Cardano will explore the levels downstream by more than 70% if this zone fails to hold.