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


  • Cardano is on the brink of a massive technical breakout after a period of consolidation.
  • The short-term analysis shows that ADA is in the hands of the bulls based on the MACD.
  • Selling pressure is likely to increase if the 50 SMA resistance holds, sabotaging the anticipated upswing.

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

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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Binance Coin needs to breach this crucial supply barrier to set up record levels again

Binance Coin has seen a massive downfall after recently erecting new all-time highs. Now, BNB stands to retest this level and perhaps set up new ones shortly.

More Binance Coin News

Gemini reaches over $25B in crypto under custody amid surging institutional demand

Gemini’s cryptocurrencies under custody doubled since January and have reached a record high of $25 billion. Institutional investors are increasingly participating in the crypto space, increasing the demand for Gemini’s services. Last week, the crypto market’s bullish price action pushed institutional assets under management of digital asset products to a record high. 

More Cryptocurrencies News

Ethereum ETFs receive approval in Canada as ETH price looks to retest all-time highs

Canada’s Ontario Securities Commission approved three Ethereum ETFs on April 20. This move comes after the recently launched Bitcoin ETF surpassed $1 billion in AUM. Ethereum price looks to surge 15% to retest recently set up highs around $2,548.

More Ethereum News

XRP holders claim SEC does not represent their interests in latest motion to intervene

XRP holders are seeking to intervene in the Securities & Exchange Commission lawsuit filed against Ripple Labs. The intervening defendants stated that both the SEC and Ripple do not represent their interests. Even if the judge grants the motion to intervene, XRP holders may only have limited involvement in the case.

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast

BTC

ETH

XRP