As the Cardano price breaks a cup and handle pattern, the $0.40 price region becomes the next bullish target.
With the crypto market showing a bullish trend amid growing optimism for a bull run, Cardano is experiencing a breakout. The completion of this trend continuation pattern signals a potential rally for ADA to $0.40.
As the tenth largest cryptocurrency with a market cap of $13.29 billion and a 10.76% increase over the last seven days, Cardano is demonstrating a healthy recovery. Will this momentum help Cardano climb higher in the crypto rankings?
Cardano’s Cup and Handle Breakout
In the 4-hour chart, Cardano’s price action reveals a cup-and-handle pattern breakout. The neckline of this pattern is at $0.36, and recent bullish reversals indicate a breakout rally.
According to Fibonacci levels on the 4-hour chart, the breakout has surpassed the 61.80% Fibonacci level at $0.366. Cardano’s price has jumped 12.80% over the last five days, starting from a double-bottom reversal near $0.328 to its current price of $0.37.
The technical indicators continue to support a bullish outlook for Cardano as the recovery gains momentum. Notably, the 50 and 200 EMA have formed a golden crossover on the 4-hour chart.
Additionally, the 100 and 200 EMA are nearing a bullish crossover. The MACD and signal lines have also regained positive alignment, with bullish histograms making a return.
Will Cardano Surpass $0.40?
Cardano’s price action has formed a bullish engulfing candle on the 4-hour chart, leading to a breakout above the 61.80% Fibonacci level. As the breakout rally picks up steam, Fibonacci levels suggest potential targets of $0.381 and $0.399 at the 78.60% and 100% levels.
With increasing momentum, Cardano’s price could reclaim $0.40, with the next potential target at the 1.618 Fibonacci level of $0.452.
Conversely, key support levels for the breakout rally are at $0.363 and $0.356, corresponding to the 50% Fibonacci level.
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.