ADA eyes 30% gain amid market sell-off
- Cardano price holds the March-April trading range high for five consecutive days.
- Accumulation/distribution metrics favor further upside for ADA.
- Daily and weekly Relative Strength Index (RSI) readings are not overbought.
Cardano price continues to ascend a wave of selling in the cryptocurrency market, generating the necessary relative strength needed to reach the measured move target at $2.27.
Cardano price not waiting for buy-on-the-dip investors
On May 5, Cardano price emerged from a multi-week cup-with-handle base with a notable jump in volume, marking a trend change for the altcoin after two months of trendless price action. The rally since has been awkward, but the accumulation/distribution profile has remained steadfastly positive, despite the gyrations in the broader market.
The measured move target of the cup-with-handle base is $2.27, yielding a 55% gain from the breakout and a 30% gain from price at the time of writing.
Standing in front of the measured move target is the 138.2% Fibonacci extension of the April decline at $1.92, followed closely by the psychologically important $2.00.
From February to April, $1.00 was omnipresent, either serving as resistance or support for Cardano price, suggesting that $2.00 could be an obstacle.
If ADA is successful in the battle at $2.00, Cardano price will have very little resistance to the measured move target of $2.27, except for the 161.8% extension of the April decline at $2.18.
ADA/USD daily chart
A widespread sell-off in the crypto market is the only thing that could derail a push to $2.27, but in light of the weakness over the last few days, it is necessary to plan for a bearish outcome.
The March-April trading range high at $1.57 is significant support for Cardano price, as noted by the five consecutive tests between May 7 and May 11.
An acceleration in selling pressure will test the handle high at $1.46 and the 50-day simple moving average at $1.31.