- 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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
XRP ruling by Judge Torres denied in Coinbase lawsuit, yet another blow to Ripple
XRP programmatic sales ruling by Judge Torres completely rejected by US Court in Coinbase lawsuit. US Court rejected Coinbase’ motion to dismiss SEC lawsuit, weighing heavily on Ripple’s legal battle.
Sushi price eyes $3 after clearing key weekly resistance level
Sushi price flips the $1.628 resistance level into a support floor after a month of struggle. A temporary retracement might be a good opportunity to accumulate SUSHI before a retest of $3. A breakdown of the $1.267 barrier would invalidate the bullish thesis.
Bitcoin Price Outlook: Will $150 billion bank Morgan Stanley send BTC to new ATH?
Bitcoin has recorded increased volatility this week, with most of BTC holders currently in profit. As market activity continues to grow with long-term holders now ramping up on distribution pressure, the pioneer crypto is bearing the brunt of growing overhead pressure.
Coinbase loses first round of battle against SEC
A day after the SEC filed a lawsuit against Binance last year, it went after Coinbase in a sign that the clampdown is extending to key players in the industry. The latest development in the matter is that the court has ruled in favor of the financial regulator, which means the case will continue.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.