Cardano Price Forecast: ADA braces for a test of $2 amid a potential bull pennant
- ADA/USD charts a bull pennant on the 12H chart.
- A test of the $2 mark appears inevitable if the bullish pattern is confirmed.
- RSI has regained upside momentum, well above 50.00.
Cardano (ADA/USD) is extending its recovery this Sunday after a sharp sell-off witnessed a day before.
The seventh most widely traded cryptocurrency is consolidating its stellar advance to a new record high reached Friday at $1.8124. The token has risen about 23% over the past seven days while up 2.50% in the last 24 hours.
ADA/USD: Aims for $2 on a sustained break above key $0.6785 resistance
ADA/USD’s 12-hour chart paints a constructive outlook, as the coin is on the verge of a bull pennant break.
A 12-hour candlestick closing above the falling trendline resistance at $0.6785 is expected to validate the upside break, calling for a test of the measured pattern target at $2.1225.
On its way to the latter, the ADA bulls could be challenged by the lifetime highs, above which the $2 psychological level could act as a powerful resistance.
The Relative Strength Index (RSI) has rebounded, now heading north once again, currently hovering around 66.50. The leading indicator suggests that there is additional room to the upside.
ADA/USD: 12-hour chart
Alternatively, if the sellers return, then the immediate support is seen at the rising trendline support at $1.5706.
Acceptance below the latter could invalidate the bullish formation, which could imply a trend reversal.
The next best safety net for the ADA buyers then awaits at the $1.50 round figure.
Further down, the upward-sloping 21-simple moving average (SMA) at $1.4495 will be on the sellers’ radars
The last resort for the optimists is envisioned at Thursday’s low of $1.4307.
All in all, the path of least resistance for the ADA price appears to the upside.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
