- Cardano price is coming off of a very bullish weekly close from last week.
- Traders could return ADA into the weekly Cloud, staving off further selling pressure.
- Bulls now eye the next primary resistance level to test at $1.50.
Cardano price action has been extremely bullish over the past two weeks. From the January low at $0.92 to the most recent high at $1.26, Cardano has gained an impressive 37%. The recent pullback from $1.30 has not resulted in a bearish continuation move. Instead, a new buying opportunity has been presented.
Cardano price readies for a breakout above $1.30 to test $1.50
On the weekly Ichimoku chart, Cardano price needs to remain above the bottom of the Ichimoku Cloud to stay away from any further bearish outlook. That means it will need to close this week at or above the $1.32 value area, which means closing above the weekly Tenkan-Sen at $1.28 and the 38.2% Fibonacci retracement at $1.32. Failure to do so means Cardano will open candlestick below the Cloud the following week – an ominous and bearish signal.
ADA/USD Weekly Ichimoku Kinko Hyo Chart
However, the $0.02/box Point and Figure chart presents a very bullish outlook with some expansive upwards price movement coming soon. Cardano price recently converted into a bull market after bulls pushed ADA past the bear market trend line (red diagonal line) at $1.18. The current O-column is the first pullback after converting into a bull market. In Point and Figure analysis, that first pullback is viewed as a sign of strength, not weakness. It also represents opportunity.
The theoretical long entry is a buy stop order at $1.20, a stop loss at $1.12, and a profit target at $1.58. This trade setup represents a 4.75:1 reward/risk. It is based on the entry after a Pole Pattern reversal. The entry is on the three-box reversal of the current O-column. So, as price moves lower, the entry and stop-loss move in tandem, but the profit target remains the same.
ADA/USD $0.01/3-box Reversal Point and Figure Chart
The profit target is based on the Vertical Profit Target Method in Point and Figure analysis but will more probably be halted near the critical and psychological price level of $1.50. The theoretical long entry is invalidated if the current O-column returns to the $1.08 value area. Cardano would likely be in the throws of a new bear market in that scenario.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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.