Cardano price breaks through bears’ fortress as ADA holds 28% gains

Cardano (ADA) price action saw massive inflows from bulls on Sunday as they managed to  tear down the bearish wall that short-sellers had built at $1.40. ADA bulls were able to touch the green ascending longer-term trend line vital for any longer-term uptrend in Cardano price. Expect to see $1.67 reached quickly and if markets can provide  a tailwind, for $1.80 or $2.00 to be gained by the end of this week.

Bulls make a coup and hijack ADA price action with bears fleeing the scene

This week, the future looks bright for Cardano price action as bulls managed to break through multiple resistance levels that were perceived to be almost impossible to tear down. But  on Sunday bulls  broke the 55-day Simple Moving Average (SMA), the monthly pivot and reentered above the green ascending trend line that will replay its part as the backbone for the uptrend. The move came close to turning into a bull trap, however, as bulls could not close above the green ascending trend line firmly, but a bounce off the 55-day SMA has acted as a launching platform for the stellar reaction ADA is performing this morning during the European session.

Going forward, expect the first fundamental profit level for ADA price to be at $1.67, the monthly R1 resistance level and a longer-term level in the process of being defined. This area will undoubtedly see some profit-taking, but the overall target will be at around $1.90 and just below the 200-day at $1.83. A fade here would make sense, testing the $1.67 support level, before another leg up to $2.00 medium-term.

ADA/USD daily chart

The risk to the downside for ADA bulls could be a quick fade and bears pushing bulls against the $1.40 barrier again. A break of that level would see an acceleration of selling with bulls cutting short their positions and reverting to that same sell-side volume. This could then lead to a possible nosedive to $1.00. This is a possible scenario in the near term, with the Relative Strength Index (RSI) sharply rising to overbought, as bulls lack leverage and the highly elevated RSI caps new gains.