• Cardano price continues to surprise to the upside.
  • ADA came within 1% of the all-time high today.
  • Relative Strength Index (RSI) still held around 50 despite the 30% correction.

Cardano price breakout from a small double-bottom base has increased the odds that ADA is on the verge of continuing the impressive advance of 2021.

Cardano price combines power with volume support 

Speculative assets, particularly cryptocurrencies, are capable of rapidly advancing. Over the last three days, Cardano has rallied 40% at today’s high and was kickstarted by the 21% breakout on Monday following news that Coinbase Pro will support the token against four trading pairs. 

Interestingly, during the ADA price correction in the first half of March, not one negative day closed on above-average volume. Investors were not rushing to the exits. Instead, the decline was precipitated by a technical reaction to the negative momentum divergence built on February 20. 

Cardano price breakout from the double-bottom base has shifted investors’ attention to the all-time high and, more importantly, to potential targets in the coming days and weeks. This scenario’s profit targets are drawn at the 1.382 Fibonacci extension level at $1.68, followed by the 1.618 Fibonacci extension level at $1.79. 

The more ambitious target is the 2.618 Fibonacci extension of the March base at $2.29, representing a 50% gain from the all-time high at $1.49.

ADA/USD daily chart

ADA/USD daily chart

Today’s rejection near $1.49 does dampen exuberant Cardano investors’ projections for a quick breakout into new highs. Some risk management needs to come into play, and the first support level is the double bottom trigger at $1.22. 

After that level, the next support level doesn’t emerge until the base low at $0.99, followed by the 50-day simple moving average (SMA) at $0.93.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Dogecoin Price Prediction: How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin Price Prediction: How to trade DOGE as crypto markets coil up after recent crash?

Dogecoin price shows signs of consolidation as it produces a potential top formation. While the direction of DOGE is decided, there might be a minor detour before reaching its target.

More Dogecoin News

Solana price action will get boring unless one of these levels is broken

Solana price action will get boring unless one of these levels is broken

Solana price shows a slow takeover of the bears after bulls managed to move the asset higher. Due to Bitcoin’s sudden sell-off, altcoins, including SOL, have taken a major hit.

More Solana News

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Crypto Sleeping Giants: Hedera Hashgraph price could shock the world

Hedera Hashgraph has the potential to rally towards 2000%. Traders should keep the smart contract alternative token on their watchlists and consider a dollar cost average approach for investing.

More Cryptocurrencies News

Is a 75% decline still possible for the Ethereum Classic price?

Is a 75% decline still possible for the Ethereum Classic price?

Ethereum Classic price rallied 100% between July 12 and July 24 before a short consolidation unfolded. After a few shallow days of sideways congestion, the Ethereum Classic price kicked off another 90% rally.

More Ethereum Classic News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP