- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin holds $87,000 as markets brace for volatility ahead of April 2 tariff announcements
Bitcoin (BTC) holds above $87,000 on Wednesday after its mild recovery so far this week. A K33 Research report explains how the markets are relatively calm and shaping up for volatility as the market absorbs the tariff announcements.
Shiba Inu rallies as trading volume rises 228% amid increase in bullish bets
Shiba Inu price extends its gains by 8% and trades at $0.000015 at the time of writing on Wednesday, rallying over 15% so far this week. On-chain data shows that SHIB’s trading volume rose 228% in the last 30 days, bolstering the platform’s bullish outlook.
BTC, ETH, and XRP could face volatility as Trump’s “Liberation Day” nears
Bitcoin (BTC) price hovers around $87,000 on Wednesday after recovering 4% in the last three days. Ethereum (ETH) and Ripple (XRP) find support around their key level, suggesting a recovery on the cards.
BlackRock’s BUIDL fund launch on Solana platform while Fidelity files for spot Solana ETF
Solana price hovers around $142 on Wednesday after recovering by 7% so far this week. BlackRock’s BUIDL fund launches on the Solana platform. Fidelity files for a spot Solana ETF with Cboe.
Bitcoin: BTC stabilizes around $84,000 despite US SEC regularity clarity and Fed rate stability
Bitcoin price stabilizes around $84,000 at the time of writing on Friday after recovering nearly 2% so far this week. The recent announcement by the US SEC that Proof-of-Work mining rewards are not securities could boost BTC investors' confidence.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.