- Cardano price got rejected by the sellers present at $1.48 and is on a pullback.
- The ascending triangle formation projects ADA at $2.16 after a successful breakout.
- A spike in selling pressure leading to a subsequent close below $0.98 could invoke a bearish scenario for ADA.
Cardano price coils up as it was rejected twice at the same level. This move provides bulls with a massive opportunity to push ADA higher.
Cardano price eyes a higher high
Cardano price started its recovery on February 23, which pushed it 85% to a new all-time high at $1.486. However, due to investors taking profits around this zone, it has become a formidable supply barrier. The second run-up faced the same fate after a 48% climb, creating a flat resistance level.
By drawing trendlines along the higher lows and the horizontal supply barrier, an ascending triangle pattern seems to form. This setup forecasts a 45% upswing, which is the distance between the first reaction high and low from the breakout point at $1.48.
Therefore, a decisive daily candlestick close above $1.48 will confirm the breakout and propel ADA to $2.16. Interestingly, this level coincides with the 127.2% Fibonacci retracement level.
Although Cardano price action reveals a bullish outlook, its ascent to $2.16 isn’t a cakewalk. In fact, the 100% Fibonacci retracement level at $1.89 could serve as a primary target for ADA. Slicing through this will confirm the bullish momentum and set up the stage for the next leg up.
A FOMO wave gripping investors after $2.16 could have the potential to catapult the so-called "Ethereum killer" to the 161.8% Fibonacci retracement level at $2.66.
ADA/USDT 1-day chart
Cardano price is still a long way from breaking out and could trend lower due to overwhelming bearish momentum. Suppose ADA bears slice through the ascending triangle’s hypotenuse leading to a daily close below the 50 one-day moving average (MA) at $0.98. In that case, it will invalidate the bullish outlook and kickstart a bearish one.
In such a case, Cardano price could slide 18% to a demand barrier at $0.80.
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
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.