- Cardano price has formed a bullish cup and handle pattern
- ADA volume is turning to the upside
- Only a break below $0.82 will invalidate the bullish thesis
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.
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