key takeaways
- Cardano is up almost 23% in the last three days.
- ADA seems to be targeting higher higher after breaking the $0.45 resistance level.
- Technical indicators suggest that ADA could rise to 51% if the rally continues.
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Cardano is rapidly gaining momentum after overcoming a critical supply wall. Technical indicators suggest that as long as ADA continues to trade above $0.50, there could be a further upside potential.
Cardano Turns Bullish
Cardano has breached an important area of resistance, which is potentially signaling the start of a new uptrend.
ADA has seen its price rise by about 23% over the past three days after ending a three-month long consolidation period. A sudden rally started soon after Cardano broke the $0.45 resistance level. Further buying pressure could push ADA towards higher highs as the most important supply barrier has been breached.
It appears that Cardano has broken out of a descending triangle on its 12-hours chart. This technical structure predicts that ADA is likely to rise up to 51% once it crosses the $0.45 resistance level. If confirmed, the formation indicates an upside target of $0.70.
However, Cardano needs to stay above the $0.50 support level for a chance to print higher levels. Failure to stay above such a critical price point can be considered as a sign of weakness, which could lead to increased profit-taking. If this happens, ADA could drop to $0.45 or even as low as $0.38.
The recent upward price action seen coincides with Ethereum’s rally, which has followed sluggish price action over the past few days. Other Layer 1 networks such as Solana, Avalanche, Phantom and NEAR have also increased in market cap as the crypto market begins to show signs of life. It remains to be seen whether the broader macroeconomic weakness that has weighed on risk-averse assets in recent months will continue to affect the crypto market.
Disclosure: At the time of writing, the author of this article owns BTC and ETH.
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