- Cardano price sees bulls storming higher in the US morning session.
- ADA breaks out of the contracting triangle and sets sail for $0.40.
- The short squeeze will hurt bears and trigger another leg higher when they start cutting their losses.
Cardano (ADA) price jumped over 4% higher on Tuesday at the US opening bell as bulls pulled a short squeeze on bears. The move is so big that a contracting triangle gets broken to the upside. Expect from now on a two-tiered sprint with the first target $0.36 and the next $0.40 in a bullish upswing.
Cardano bulls are on fire as several negative tail risks abate
Cardano price is shooting through the roof almost literally this Tuesday. With the US session underway, ADA bulls are enjoying a few tail risks that are diminishing as markets are drawing the card for risk-on. Under this bullish sentiment, buyers are pulling a short squeeze on the bears, who will soon need to start cutting their losses.
ADA is thus primed for a second move higher as those sellers will need to switch sides and buy ADA in order to cut their losses. Certainly, the sellers that used the triangle's descending side will face substantial losses in this breakout trade. This will act as a catalyst to pierce through $0.36 and open the opportunity to rally forward to $0.40 by Friday.
ADA/USD 4H-chart
The glass could as well be half empty instead of being half full though. Seeing the choppy price action on Monday and early this Tuesday in the ASIA PAC and European session, a bull trap could form here again. Price action could slink like a failed pudding and get smacked to the ground at $0.325.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. Investors can expect XRP to kickstart a massive rally.
Optimism price outlook with nearly $90 million worth of OP tokens flooding markets on Friday
Optimism volatility has shrunk in the ours leading to the network’s cliff unlock. It joins the likes of dYdX and Sui, which have similar events on their calendars. As token unlocks are often considered bearish catalysts, investors should brace for a reaction after the event.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Retail watches from the sidelines with a bias for shorts
Bitcoin could clear $73,777 peak as BTC bulls resurface. Ethereum might fall 10% before next leg up as ETH RSI teases with sell signal. XRP could lose $0.6000 threshold as Ripple bulls fail to show up.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito price action shows a potential cup and handle formation. Based on theoretical measurement rules, a successful breakout could yield a 56% rally to $6.0. A breakdown of the $3.86 support level would create a lower low for JTO and invalidate the bullish thesis.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.