- Cardano price has climbed 31.77% since July 21, but it has been a rally marked by huge intra-day swings and the empathic resistance of the 2018 high.
- ADA daily Relative Strength Index (RSI) has not reached an overbought reading, proposing more upside.
- Digital token releasing from a symmetrical triangle and triggering a bullish Golden Cross on the six-hour chart.
Cardano price fell -4.66% in July and failed to close above the 2018 high of $1.40. Due to the active head-and-shoulders pattern and the resilience of the 2018 high, the ADA outlook is still mixed. However, the emergence of a symmetrical triangle breakout combined with a Golden Cross on the six-chart improves the opportunity for a daily close above $1.50 and a transition from rally to advance.
Cardano price is golden, looks for a strong bid
Cardano price may provide a clue on the six-hour chart as the bullish Golden Cross pattern coincides with a symmetrical triangle breakout. It is the first Golden Cross pattern since the launch of the remarkable ADA rally in November 2020.
The measured move of the symmetrical triangle is 13.61%, projecting a Cardano price target of $1.57. The move may be insignificant, but it would void the head-and-shoulders pattern and confirm the ADA transition from rally to advance.
The only visible obstacle is that the breakout and Golden Cross are triggering as Cardano price tests the 2018 high again.
ADA/USD 6-hour chart
On a daily chart, the head-and-shoulders pattern is revealed with a measured move of 60% and a Cardano price target of $1.37 based on the 61.8% Fibonacci retracement level of the advance from the March 2020 low as the neckline. A collapse of that size would easily dismantle the support at the 50-week simple moving average (SMA) at $0.78 and knock ADA below the April 2018 high of $0.41.
Thus, the clarity offered by the six-hour chart is fundamental in solving the Cardano price riddle in the coming hours or days. A continuation of the breakout from the symmetrical triangle, strengthened by the Golden Cross, may generate the price momentum to close ADA above the right shoulder at $1.50 and permanently fracture the resistance of the 2018 high of $1.40.
ADA/USD daily chart
At this point, it is all about follow-through for Cardano price. A continuation of the symmetrical triangle breakout and a daily close above $1.50 may finally repair the ADA price structure that has confounded investors since the May crash.
Here, FXStreet's analysts evaluate where ADA could be heading next as it seems bound to advance further.
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
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
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.