- Cardano price rallied against the monthly R1 resistance level at $1.246.
- ADA price sees higher lows, squeezing bulls against that same R1 pivot.
- Expect a bullish breakout towards $1.520, where a trifecta of bearish elements will form a price cap.
Cardano price has been on a rampage for over a week now as investors poured massively into the price action, prepositioning for a relief rally. That plan has worked, with ADA price now looking set to extend its uptrend as more room opens up. Another 28% of profits are scattered around, ready to be harvested before bulls face a heavy area of resistance with multiple bearish elements present at around $1.52.
Cardano price to jump by at least 25%
Cardano (ADA) price has had a rough past 48 hours with bulls losing some heart at the monthly R1 resistance at $1.246 again. A double top has formed and could result in a fade to the downside. Looking more broadly at how price action has behaved, the lows are coming in higher and are revealing a brighter bullish story, as buyers get squeezed against the R1. A breakout could happen at any moment if bears just above the R1 get stopped out and need to join the bull-camp to cut their losses, resulting in even more buying action. With the positive wave in markets and a few tail risks being priced out, this looks to be the most probable outcome.
ADA price is thus on the cusp of breaking above $1.246 and opening a gap up towards $1.52, constituting a 28% price appreciation before bulls hit a trifecta of bearish elements, including the 200-day Simple Moving Average (SMA) and the R2 and a historical trend line all in the mix around the same level. As bulls go forward, $1.40 is likely to be overtaken, which will add to the psychological victory as new highs for the year will be in reach from there.
ADA/USD daily chart
Not all tail risks are out of the equation, and as already mentioned above, the risk at hand could still be that the double rejection against the R1 has scared investors away. Next to that, the Relative Strength Index (RSI) is flashing red signals as it is trading in overbought and has little room for further upward movement. Expect a drop back to the green ascending trend line near the psychological $1.00 level for support and a possible rebound back up.
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 holds above $61,000 after sell-off driven by escalating conflict between Israel and Iran
Bitcoin recovers slightly on Wednesday, trading above $61,000, after Tuesday’s slump due to the escalating Israel-Iran conflicts. The decline, which led BTC to trade below $61,000, wiped out more than $500 million from the crypto market.
XRP open interest skyrockets as Ripple tests its stablecoin RLUSD
Ripple has generated interest among derivatives traders as the payment remittance firm tests its stablecoin Ripple USD. Ripple announced that the asset is awaiting regulatory approval and is geared toward institutions, not individuals.
Monero price falls below $150 as Kraken delists XMR in Europe amid regulatory changes
Monero shows weakness trades in the red on Wednesday after losing over 6% the previous day. XMR dipped more than 10% at some point on Tuesday following Kraken’s announcement that it is delisting XMR trading in Europe, which supported this bearish move.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Bitcoin dips below $61,000 amid escalating tensions between Israel and Iran
Bitcoin (BTC) and Ethereum (ETH) have closed below their key support levels, signaling a potential decline ahead, while Ripple (XRP) is retesting its crucial support level, with a break below likely indicating further downside.
Bitcoin Weekly Forecast: $70,000 mark on sight as bulls remain strong
Bitcoin has risen around 3% so far this week, breaking above its range upper limit of $64,700. This gain was supported by increased institutional demand for ETFs, which recorded inflows of more than $612 million this week.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.