2021-10-08 20:48:56

Cardano next breakout could set the path for ADA to target $6

  • Cardano price breaks above bearish pennant, invalidating a critical bearish continuation pattern.
  • Continued momentum is necessary to push Cardano out of the Cloud.
  • The march towards the $6 value area could begin very soon.

Cardano price continues to show strength and resilience inside the Cloud. As a result, some immediate warning signs about a bearish continuation move might be invalidated soon if Cardano can breakout above the Cloud.

Cardano price nears new bullish expansion phase, will target new all-time highs near the $6 value area

Cardano price has been highly consistent over the four daily trading sessions. It had been trading inside a bearish continuation pattern known as a bearish pennant but failed to break down below that pattern. Instead, price broke above and closed above the pennant on Thursday. More importantly, the Thursday close positioned the Friday open above the 38.2% Fibonacci retracement and the daily Kijun-Sen.

Cardanos price needs to display a final trigger: a close above the Cloud and the Chikou Span closing above the Candlesticks. Both conditions will be complete if bulls can rally Cardano to a close at the $2.60 level. From $2.60, the following projected swing range in Elliot Wave is the 100% Fibonacci expansion at $5.80.

ADA/USDT Daily Ichimoku Chart

To invalidate the bullish outlook, bears will need to confirm the strength of the hidden bearish divergence between the Composite Index and the Cardano price chart. The Kijun-Sen and 38.2% Fibonacci retracement remain daily resistance levels, so any close below them could trigger some intense selling pressure. Weekends are notorious for volatility and whipsaws, so if bears were going to cause some havoc, Cardano is perfectly positioned to do so.

 

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