Sunday, June 20, 2021
Home Crypto News Analysis Cardano Technical Analysis: ADA IS Forming An Ascending Triangle, A Breakout Could...

Cardano Technical Analysis: ADA IS Forming An Ascending Triangle, A Breakout Could Explode Price To $2.4

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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.

ada-usd 4 hour technical analysis

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.

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Albert Brown
Albert Brown has obtained his master's degree in Stock Trading And Investing. His specialty is analyzing the price actions of crypto and stock markets. Albert provides a major role in TheCryptoBasic as a crypto analyst. He is also known for his work on Twinkle Magazine and TipRanks.


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