Cardano has maintained an uptrend since the initial decline to $1.01 in May. The first retracement attempt almost hit $2.00, but another correction followed immediately. The cat-and-mouse game continued between bears and bulls, with resistance at $1.8 limiting the upward movement. But the bulls continued to be more assertive, making the higher low pattern on the 4-hour chart.
The upcoming smart contracts have kept investor interest on the rooftop. Notice that the horizontal resistance at $1.80 formed the x-axis of the ascending triangle. Likewise, higher lows have formed a hypotenuse, implying that the bulls are gaining momentum.
An ascending triangle is a very bullish pattern in technical analysis. Ultimately, the breakout occurs before the trend lines converge. Low volumes characterize the period of consolidation within the triangle. However, the spike in trading volume marks a breakout as bulls take advantage of the expected rise to $ 2.41.
Cardano Important Levels
Current rate: $1.75
Volatility: High
Trend: Bullish
Support: $1.60, $1.30 and $1.30
Resistance: $1.80 and $2.20
Cardano’s uptrend was confirmed by short-term bullish signals from the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI). The former has recently returned to positive territory, while the MACD line maintains a divergence above the signal line.
Subsequently, the RSI nearly reached the overbought area, hinting at an intense bullish takeover. Thus, a break above $1.80 (the x-axis of the triangle) could catapult Cardano towards the $2.40 target.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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