Cardano price raises momentum quotient, positions ADA for a new all-time high

• Cardano price reaches 61.8% Fibonacci retracement of the May correction at $1.90.
• ADA breaks the resistance of the 2018 high with the largest daily gain since May 24.
• The symmetrical triangle measured move target of $1.74 was quickly eclipsed.

Cardano price finally released from the magnet effect of the 2018 high at $1.40 with an emphatic 13.74% gain on August 10. The breakthrough was followed by a 6.93% gain and a test of the 61.8% retracement of the May collapse, generating a 33% return for ADA investors that bought into the symmetrical triangle breakout on August 5. The bullish price action should continue with the all-time high of $2.51 now within striking distance.

Cardano price volatility adds a new trend dynamic

At yesterday’s high of $1.91, Cardano price had climbed almost 90% from the July 20 low, highlighted by an 11.01% gain on July 21 to kickstart the ADA rally and a 13.74% spike on August 10 to break the resistance of the 2018 high.  

A fundamental turning point for the ADA rally off the July 20 low was the bullish Golden Cross pattern on the six-hour chart on August 5. It raised the momentum quotient for the rally and posited a trend change for Cardano price.

ADA/USD 6-hour chart

With the test of the 61.8% retracement level and the June 3 high of $1.89, Cardano price has positioned itself for much higher prices. To capitalize on the building momentum, ADA must discard the retracement level and the psychologically important $2.00 with the same conclusive price action shown on August 10. If successful, Cardano price will reach the 78.6% retracement level at $2.16 and be just 16% from the all-time high of $2.51.

Higher ADA price projections will be reported once Cardano price has reached the all-time high.

ADA/USD daily chart

The cryptocurrency complex could be overwhelmed by a wave of profit-taking in the coming days, putting the considerable Cardano price progress at risk. ADA must hold the 2018 high of $1.40 during any correction, and a declining volume profile should accompany it.

It was a long wait for ADA investors before Cardano price ramped up the volatility to break the chains of the 2018 high and the momentum quotient to produce two consecutive days with solid gains. As long as the 2018 high holds on a daily closing basis, the altcoin will be well-positioned to strike a new all-time high in the coming weeks.

Here, FXStreet's analysts evaluate where ADA could be heading next as it sliced through critical resistance.

 

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