Cardano Price Prediction: ADA could rally 25% as bulls gain momentum

Cardano price is rising after a series of consecutive bullish engulfing candles have been established on the 8-hour chart. A few indicators are signaling more gains to come for ADA. 

Cardano price is primed for a rally

Cardano price should have investors pleased after surging by 20% since the weekend. It was mentioned in last week’s analysis that a close above $0.883 would be the catalyst to invalidate any short-term bearish ideas. The bulls managed to establish a bullish engulfing candlestick into the invalidation level. Now, ADA price has rallied an additional 10%, closing at $0.975 on the 8-hour chart.

The so-called “Ethereum killer” now appears to be establishing a cup and handle pattern following the most recent price action. A 25% increase in ADA price is estimated to occur if the bulls successfully break out from the bullish pattern. 

Cardano price could likely challenge swing highs in the $1.20 zone. It should be noted that the volume is turning in favor of the bulls, which adds further confluence of upward strength and momentum in the future.

ADA-USD 8-Hour Chart

Traders should always consider a bearish scenario when approaching any investment or trade. Cardano price should under no circumstances fall beneath the previous swing low at $0.82. A drop in ADA price to below this crucial support level would invalidate the bullish cup and handle pattern. 

Cardano price would then fall towards $0.77 or even $0.74, representing a 25% correction from the current levels.