• Cardano price has climbed 31.77% since July 21, but it has been a rally marked by huge intra-day swings and the empathic resistance of the 2018 high.
  • ADA daily Relative Strength Index (RSI) has not reached an overbought reading, proposing more upside.
  • Digital token releasing from a symmetrical triangle and triggering a bullish Golden Cross on the six-hour chart.

Cardano price fell -4.66% in July and failed to close above the 2018 high of $1.40. Due to the active head-and-shoulders pattern and the resilience of the 2018 high, the ADA outlook is still mixed. However, the emergence of a symmetrical triangle breakout combined with a Golden Cross on the six-chart improves the opportunity for a daily close above $1.50 and a transition from rally to advance.

Cardano price is golden, looks for a strong bid

Cardano price may provide a clue on the six-hour chart as the bullish Golden Cross pattern coincides with a symmetrical triangle breakout. It is the first Golden Cross pattern since the launch of the remarkable ADA rally in November 2020.

The measured move of the symmetrical triangle is 13.61%, projecting a Cardano price target of $1.57. The move may be insignificant, but it would void the head-and-shoulders pattern and confirm the ADA transition from rally to advance.

The only visible obstacle is that the breakout and Golden Cross are triggering as Cardano price tests the 2018 high again.

ADA/USD 6-hour chart

ADA/USD 6-hour chart

On a daily chart, the head-and-shoulders pattern is revealed with a measured move of 60% and a Cardano price target of $1.37 based on the 61.8% Fibonacci retracement level of the advance from the March 2020 low as the neckline. A collapse of that size would easily dismantle the support at the 50-week simple moving average (SMA) at $0.78 and knock ADA below the April 2018 high of $0.41.

Thus, the clarity offered by the six-hour chart is fundamental in solving the Cardano price riddle in the coming hours or days. A continuation of the breakout from the symmetrical triangle, strengthened by the Golden Cross, may generate the price momentum to close ADA above the right shoulder at $1.50 and permanently fracture the resistance of the 2018 high of $1.40.

ADA/USD daily chart

ADA/USD daily chart

At this point, it is all about follow-through for Cardano price. A continuation of the symmetrical triangle breakout and a daily close above $1.50 may finally repair the ADA price structure that has confounded investors since the May crash.

Here, FXStreet's analysts evaluate where ADA could be heading next as it seems bound to advance further.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

Scam Alert: How to avoid trouble on Terra’s LUNA 2.0 airdrop

The LUNA hard fork is set to occur on May 28, followed by the subsequent airdrop of LUNA 2.0 tokens to eligible holders. Ahead of the real LUNA 2.0 airdrop, some scammers have tried to lure LUNA and UST holders to send their assets in lieu of receiving the new tokens. 

More Terra News

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin Weekly Forecast: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

More Bitcoin News

This Web3 move by Crypto.com could be a good bet for patient investors

This Web3 move by Crypto.com could be a good bet for patient investors

Crypto.com price stabilization on a high time frame chart indicates that a bottom formation could be taking place. This pattern combined with a bullish signal from a momentum indicator adds credence to the possibility of a reversal and a recovery rally for CRO.

More Crypto.com News

Why Elon Musk’s tweet failed to move Dogecoin price

Why Elon Musk’s tweet failed to move Dogecoin price

Dogecoin price slipped up as Bitcoin price triggered a sudden crash on May 26. This downswing, while serving as a great opportunity to accumulate DOGE, failed to recover alongside BTC.

More Dogecoin News

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin: On-chain metrics support multiplying downside threats

Bitcoin price consolidates above a weekly support level after the LUNA-induced crash on May 12. This coiling price action could cause BTC to trigger a move to the downside, further deepening the woes of investors.

Read full analysis

BTC

ETH

XRP