Current Market Performance
Cardano’s ADA has been making waves in the cryptocurrency market, surging by an impressive 35% over the past week. Currently, the altcoin is trading close to the $0.77 mark, and many analysts are optimistic about its potential to reach the $1 threshold soon.
Technical Analysis and Key Resistance Levels
According to Josh, an analyst from Crypto World, Cardano is currently encountering resistance at the 50% Fibonacci retracement level. This critical zone, located between $0.82 and $0.83 on the weekly chart, presents a significant hurdle for ADA. A sustained breakout above this level, particularly with strong candle closes, could pave the way for the price to aim for higher targets.
Potential for a Bullish Breakout
Should Cardano manage to surpass the $0.83 resistance, the next major target lies within the $1.12 to $1.23 range, identified as the golden pocket zone. This area is crucial for further upward momentum, as the broader trend remains bullish. Cardano continues to form higher highs and higher lows, indicating sustained momentum.
Short-Term Price Patterns
Cardano is currently developing a bullish continuation pattern, often referred to as a symmetrical or horizontal triangle. This pattern suggests the possibility of continued price increases following a breakout. The targeted price for this pattern is around $0.85. A successful breakout could result in a 30% to 43% gain, potentially driving the price to $1.18.
However, achieving this breakout above $0.83 is crucial for reaching these ambitious price targets. Failing to overcome this resistance could result in a short-term pullback.
Cardano’s Performance Against Bitcoin
Examining the Cardano/Bitcoin (ADA/BTC) chart reveals that Cardano has recently outpaced Bitcoin, showcasing strong bullish momentum. The ADA/BTC chart is rebounding from a key support level, which historically precedes significant bullish movements. This pattern was last observed in late 2019 and early 2021, leading to substantial rallies.
Emergence of Bullish Divergence
A bullish divergence is beginning to appear on the ADA/BTC chart, suggesting a potential end to a prolonged bear market against Bitcoin. To confirm the onset of a new bull market for Cardano, we need to witness either a higher low or a higher high on the chart.
