Cardano Price Prediction: Breakout Trading 101
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- Cardano price has been trading range bound for the last three days in the 40-cent zone.
- ADA Is setting up a bullish swing of 9%, targeting $0.440.
- Evaluation of the bullish thesis will come from a breach below $0.395.
Cardona price is building a cause for the next bullish surge. Key levels have been identified to assess how an uptick in volatility could impact the current trading range.
Cardano price shows subtle bullish urgency
Cardano price shows peculiar market behavior within the $0.40 zone. On February 20th, the early morning bears controlled the trend triggering a breach of the range low at $0.397.
The scalable smart contract token has been trading within this range for three days. The early-morning trigger of the range low was short-lived as bulls promptly joined the market and forged a 3% surge back up to the other side of the range.
Cardano price currently auctions at $0.405. The recent price action suggests that bears in the market are trapped within the overall pennant formation that has been forming in the $0.40 zone. Classical technical analysis would suggest multiplying the total days the ADA price has traded within the range by the average percentage.
A 3% upswing multiplied by the last three days of trading in the $0.40 zone would result in a 9% surge toward the $0.44 region. A spike toward the target would liquidate highs above November's 2022 market top at $0.438. A hurdle over the previous day's high at $0.412 would be the final confirmation that a rally was taking place.
ADA/USDDT 1-Day Chart
Invalidation of the bullish thesis could arise from a breach below the 8-day exponential moving average (EMA), which provided support during the early morning sell-off. A breach of the EMA at $0.395 could lead to a 9% decline to the downside targeting $0.362.
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