Cardano’s recovery is at risk as the broader market faces a demand crunch. Will ADA start a bull cycle in a weekly triangle for a breakout run this week?
With an intraday jump of 4.27%, Cardano ranks lowest in the top 10 crypto-list with a market cap of $12.26 Billion. Trading at $0.341, the intraday recovery creates a bullish piercing candle, teasing a new bull cycle.
As trading volumes increase to support a recovery run, Cardano hands at a crucial support trendline. So, let’s check the ADA price chart to find entry opportunities for the upcoming rally.
Weekly Triangle Holds The Cardano Fate
With a recent bull cycle failing to reach the overhead trendline, Cardano is taking another retest of a support trendline on the weekly triangle. Last week, Cardano fell to $0.27 before a bullish comeback propelled the closing price to $0.328. Thus, the buyers maintain dominance over the $0.30 mark.
Starting the week on a bullish note, Cardano has increased by 4.27% to form a bullish candle. This increases the possibility of a morning star pattern to reignite a bull cycle.
The sudden failure in uptrend delays the bullish crossover in the MACD and signal lines. However, the weekly RSI line maintains similar values despite a drop in bottom formation. Hence, the RSI line reveals a bullish divergence, bolstering the uptrend chances.
4-Hour Chart Reveals Retest Run in Cardano
With a morning star anticipation in the weekly chart, Cardano prepares a large-scale bullish cycle in the shorter timeframes. In the 4-hour chart, Cardano takes another retest of the broken trendline.
As per the Fibonacci levels, a sideways trend is visible between the 23.60% and 38.20% Fib levels. Currently, a small bull cycle is in play with three consecutive bullish candles, heading towards $0.35.
Further, the recovery surpasses the 20 EMA at $0.343, with all the other crucial EMAs (50, 100, and 200) maintaining a bearish alignment at $0.346, $0.361, and $0.379 on the 4H chart.
Will Cardano Surge?
As the broader market sentiment is at a critical stage, the recovery run in Cardano faces multiple hurdles. Based on the Fibonacci levels, ADA taking support at $0.331 reveals underlying strength.
Hence, a bullish breakout of the overhead ceiling at $0.354 will increase the bullish momentum in Cardano. If the uptrend can live, ADA can scale to $0.390 or $0.449 this week.
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.
