• Cardano price has presented an optimistic set-up as the bulls eye a 20% upswing.
  • ADA may finally be attempting to reverse the period of underperformance with an ascent toward $1.78.
  • In order for the bullish outlook to be validated, the Ethereum killer must slice above the critical neckline of the pattern at $1.48.

Cardano price has revealed an optimistic outlook after the extended period of sluggish performance. ADA could be headed for a 20% upswing toward $1.78 if the Ethereum killer manages to overcome one last remaining hurdle. 

Cardano price eyes bullish reversal

Cardano price has formed a cup and handle pattern on the 12-hour chart, suggesting a 20% climb from the neckline of the pattern toward $1.78. 

While the governing technical pattern indicates a bullish outlook for ADA, Cardano price must slice above the neckline of the chart pattern at $1.48 in order for the optimistic chart pattern to be validated.

The first resistance for Cardano price appears at the 50% retracement level at $1.47. If ADA manages to slice above the aforementioned neckline at $1.48, the token will face its next hurdle at the 61.8% Fibonacci retracement level at $1.54, then at the 100 twelve-hour Simple Moving Average (SMA) at $1.59.

An additional headwind may appear at the 78.6% Fibonacci retracement level at $1.63 before the optimistic target can be reached. If sufficient buying pressure emerges, Cardano price may reach the target given by the cup and handle pattern at $1.78.

Bigger aspirations for Cardano price will aim for the 200 twelve-hour SMA at $1.87, coinciding with the resistance line given by the Momentum Reversal Indicator (MRI).

ADAUSDT

ADA/USDT 12-hour chart

However, if a spike in sell orders occurs, Cardano price may fall toward the first line of defense at the 38.2% Fibonacci retracement level at $1.40, then toward the 50 twelve-hour SMA at $1.35. 

The 21 twelve-hour SMA would also act as reliable support for ADA at $1.33, before Cardano price drops toward the 23.6% Fibonacci retracement level at $1.32 if selling pressure continues to increase. 

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