Cardano has broken out of a falling channel, rising 8.46% in just four days. Can ADA’s recovery rally sustain momentum as it approaches key resistance levels at $0.42 and $0.45?
Altcoins are making a comeback as the broader crypto market bounces back from the $2.1 trillion valuation. Amid the top performers, Cardano struggles to make the headlines but signals a trend reversal in the daily chart.
As it concludes a long-coming streak of lower-high formations, the 11th biggest crypto per market cap hints at a bull run. Will the Cardano price trend continue to soar, or multiple overhead resistances limit the growth?
Cardano’s Falling Channel Break
With a swift end to its negative cycle following a three-day crash from September 14-16, Cardano is making a bullish comeback. The altcoin has risen 8.46% over the past four days and is currently trading at $0.359, with an intraday gain of 2.28% from the opening price of $0.352.
Cardano’s recovery rally indicates a potential breakout above multiple resistances on the daily chart. Notably, the price has surpassed the 50-day SMA and a long-standing overhead resistance trendline.
The trendline breakout marks a falling channel breakout in the daily chart and completes a set of four consecutive bullish candles. Currently, the Cardano price is heading towards the next dynamic resistance of the 100-day SMA at $0.373.
Where’s Cardano Headed?
The ongoing recovery is positively impacting the MACD and signal line, with a rise in positive histograms. Additionally, the momentum indicator is avoiding a negative crossover, signaling a short-term buying opportunity.
On a related note, during the Token 2049 event in Singapore, Cardano founder Charles Hoskinson playfully urged Gemini Exchange to list ADA, holding a placard that read “When ADA?” This light-hearted appeal has renewed interest in Cardano and could enhance the chances of an ADA listing on Gemini, potentially boosting its price in the near term.
According to Fibonacci levels, the next key resistance is at the 23.60% level, around $0.422, followed by the 200-day EMA at $0.45. As such, reaching the psychological $0.50 mark in one go seems unlikely, as Cardano may encounter multiple challenges along the way.
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.
