- ADA has had its price actions consolidating within a descending triangle formation for almost ten days.
- A breakout of this pattern predicts a 16% potential move, probably upward.
- If Cardano produces a significant-close under $1.20, it will withdraw the bullish narrative.
Cardano (ADA) has consolidated beyond a critical level, producing nearly equal lower highs and lower lows. With that, the alt formed a bearish pattern. Nevertheless, Cardano’s position at a crucial demand territory shows a possible bullish breakout.
ADA Price Targets Higher Highs
ADA price created about two equal lows and three lower highs near $1.20 since 7 December. Using a trend line to connect the swing points created a descending triangle. This technical pattern usually triggers downward moves, thus a bearish formation. Nevertheless, ADA price has printed this consolidation shape slightly beyond a daily demand region that extends between $1.02 and $1.19. That way, Cardano’s chances to head lower remain low.
CypherMindHQ.com Artificial Intelligence Crypto Trading System - Surpass the competition with this cutting-edge AI system! Utilize the prowess of innovative algorithms and amplify your crypto trading strategies with CypherMindHQ. Learn more today!
Meanwhile, ADA’s current setup predicts a 16% upswing towards $1.51. That comes from adding the first swing high and low distance to the breakout level. However, Cardano requires a 4-hour candle close beyond the triangle’s edge near $1.30 to catalyze a steady bullish rally.
During the upward journey, Cardano will encounter a massive hurdle at $1.45. The altcoin has to overcome this obstacle for bulls to attain their goal, exploring $1.51.
If ADA price forms a 4hr candle close under the triangle’s lower area at 41.20, it will suggest a bearish breakout. Though this move is unlikely at the moment. However, such a case will have descending triangle’s prediction of a 16% drop to $1 coming into play. Bears have to drag the alt under the massive demand territory ($1.02 – $1.19) for the downward narrative to play.
ADA hints at a breakout after consolidating within a descending triangle formation for almost ten days. The altcoin has chances to record a 16% move, possibly to the upside. The massive demand region can form a base for a bullish run. Nevertheless, a significant candle close beneath $1.20 will cancel the upward thesis.
What are your views on the content above? You can leave your reply in the comment area below.
