Cardano price jumps over 4% at US opening bell: Here is what you need to know
- Cardano price sees bulls storming higher in the US morning session.
- ADA breaks out of the contracting triangle and sets sail for $0.40.
- The short squeeze will hurt bears and trigger another leg higher when they start cutting their losses.
Cardano (ADA) price jumped over 4% higher on Tuesday at the US opening bell as bulls pulled a short squeeze on bears. The move is so big that a contracting triangle gets broken to the upside. Expect from now on a two-tiered sprint with the first target $0.36 and the next $0.40 in a bullish upswing.
Cardano bulls are on fire as several negative tail risks abate
Cardano price is shooting through the roof almost literally this Tuesday. With the US session underway, ADA bulls are enjoying a few tail risks that are diminishing as markets are drawing the card for risk-on. Under this bullish sentiment, buyers are pulling a short squeeze on the bears, who will soon need to start cutting their losses.
ADA is thus primed for a second move higher as those sellers will need to switch sides and buy ADA in order to cut their losses. Certainly, the sellers that used the triangle's descending side will face substantial losses in this breakout trade. This will act as a catalyst to pierce through $0.36 and open the opportunity to rally forward to $0.40 by Friday.
ADA/USD 4H-chart
The glass could as well be half empty instead of being half full though. Seeing the choppy price action on Monday and early this Tuesday in the ASIA PAC and European session, a bull trap could form here again. Price action could slink like a failed pudding and get smacked to the ground at $0.325.
Author
Filip Lagaart
FXStreet
Filip Lagaart is a former sales/trader with over 15 years of financial markets expertise under its belt.
