Cardano’s Recent Performance
In the past week, Cardano’s ADA has demonstrated remarkable growth, appreciating by 35%. Currently, the altcoin is trading close to the $0.77 mark, sparking optimism among analysts who anticipate that ADA could soon reach the $1 milestone.
Key Resistance Levels to Watch
According to Josh, an analyst from Crypto World, Cardano is encountering resistance at the 50% Fibonacci retracement level, positioned between $0.82 and $0.83 on the weekly chart. This level is crucial as it may restrict short-term price movements. However, if ADA successfully breaks above $0.83, supported by strong candle closes, it could pave the way for higher price targets.
Potential for a Bullish Breakout
Once Cardano surpasses the $0.83 mark, the subsequent major target is set between $1.12 and $1.23, identified as the golden pocket zone. This range represents a significant price area for further upward momentum. The larger trend remains bullish, evidenced by Cardano’s consistent formation of higher highs and higher lows, indicating sustained momentum.
Understanding Short-Term Price Patterns
ADA is currently forming a bullish continuation pattern known as a symmetrical or horizontal triangle. This pattern suggests the possibility of continued price escalation post-breakout. The price target for this pattern is approximately $0.85, and a more substantial breakout could yield gains between 30% and 43%, potentially reaching as high as $1.18. Nevertheless, a confirmed breakout above $0.83 is essential to move towards these higher price targets. Failure to breach this resistance could result in a short-term pullback.
Cardano vs. Bitcoin Performance
In the Cardano/Bitcoin (ADA/BTC) comparison, Cardano has recently outperformed Bitcoin, demonstrating strong bullish momentum. The ADA/BTC chart is rebounding from a key support level, historically associated with significant bullish movements. The last such occurrence was in late 2019 and early 2021, which led to substantial rallies.
Signs of Bullish Divergence
A bullish divergence is emerging on the ADA/BTC chart, indicating the potential conclusion of a prolonged bear market against Bitcoin. To confirm Cardano’s entry into a new bull market, it is essential to observe either a higher low or higher high on the chart.
