Cardano Price Prediction: ADA needs to reclaim this level to retain bullish outlook

Cardano price is treading dangerously close to breaching the hypotenuse of an ascending triangle pattern.
If ADA manages to climb above the 4-hour 200 SMA at $1.15, the bullish scenario will stay alive.
A decisive close above $1.48 would hint at kickstarting a 46% upswing to $2.15.

Cardano price is showing signs of indecisiveness as it trades along the hypotenuse of an ascending triangle pattern.

Cardano price trudges around a critical level

On the 4-hour chart, the Cardano price has created multiple higher lows, showing the presence of aggressive buyers. However, sellers present along the supply barrier at $1.48 have successfully prevented these swings from passing over.

This price action results in an ascending triangle formation, which predicts a 45% bull rally if ADA price convincingly slices through $1.48 with a strong surge in volume.

However, at the time of writing, buyers seem to be seen nowhere, as Cardano price came very close to breaching the pattern’s hypotenuse. If the bulls make a comeback that pushes ADA higher, then a swing high towards the triangle’s base can be expected.

This move would be the result of a 30% pump in ADA’s market value. A confirmation of this bull run will come after Cardano reclaims the 200 Simple Moving Average on the 4-hour chart. Such a development is likely to instill confidence in the sidelined investors triggering a run-up to $1.48.

A decisive close above this level due to the continuation of this upward momentum could result in ADA hitting its intended target at $2.15, coinciding with the 127.2% Fibonacci retracement level.

ADA/USDT 4-hour chart

If Cardano price breaches the hypotenuse at $1.09, leading to a decisive close below the immediate support level at $0.98, it would invalidate the bullish outlook and catalyze a bearish run.

In such a case, ADA could slide 10% toward a demand barrier at $0.88.

Share: Cryptos feed

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.

Join Telegram