Cardano Price Forecast: ADA in bullish consolidation, eyes on $0.40 and beyond
- ADA/USD’s path of least resistance appears north.
- Teasing a pennant breakout on the daily chart.
- The no. 7 coin is up 82% over the past seven days.
Cardano (ADA/USD) is gathering pace for the next leg higher, having rallied over 11% on Saturday. It hit the highest levels on two days, although remained well below the lift-time highs of $0.3536.
The seventh most widely traded crypto asset has gained 82% over the past seven days and remains on track to extend the parabolic rise towards the $0.40 level.
The technical setup on the four-hour chart remains in favor of the ADA bulls, as the price trades around $0.33, as of writing.
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ADA/USD: Four-hour chart
The ADA bulls kicked-off the year 2021 with great pomp and show, rising from $0.15 to the record highs above $0.3550. Cardano entered a phase of upside consolidation last Thursday, awaiting a strong catalyst to unleash the additional upside.
The consolidation has taken the shape of a pennant, with the price now challenging the falling trendline (pennant) hurdle at $0.3365.
Should the coin manage to close the candle above the latter, a bullish breakout would be confirmed, calling for a retest of the all-time-highs.
The buyers will then target the $0.40 barrier, above which the measured target at $0.4285.
The Relative Strength Index (RSI) is seeing an upturn, as it heads back towards the overbought territory, currently placed at 62.40. The indicator suggests that there is plenty of room to the upside.
The immediate downside appears guarded by the rising trendline (pattern) support at $0.3198.
A decisive close below that level could yield a downside break of the potential pennant. The next cushion for the bulls is aligned at the upward-sloping 21-simple moving average (SMA) at $0.3152.
Failure to resist the last could trigger a sharp drop towards the bullish 50-SMA at $0.2600.
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.
