2021-07-07 04:57:28

Is Cardano (ADA) 22% Technical Upswing To $1.72 Viable?

  • Cardano price retested the ascending triangle’s x-axis support ahead of the much-awaited upswing to $1.72.
  • ADA price short-term technical picture stays positive as bulls gain ground above $1.4.

Cardano price has gained traction from the support in June around $1. Initially, the uptrend had been capped under $1.42, but a recent break above this crucial level gave bulls a seat in the cockpit.

At the time of writing, ADA price trades at $1.425 while embracing support at $1.42. Its immediate upside is limited by the 200 Simple Moving Average (SMA) on the four-hour chart. The 50 SMA also adds credence to the short-term support, which must hold to ensure that bulls’ focus on the uptrend toward $1.72.

Cardano price massive bullish outlook

The upcoming smart contract cryptocurrency endured a prolonged consolidation period that began after the selloff in June. While its price has made a series of higher lows since then, the $1.42 resistance level continued to reject Cardano price from advancing further.

Such market behavior seemingly formed an ascending triangle on Cardano’s four-hour chart. A horizontal line drawn along with the swing highs forms the x-axis, while a rising trend line established along with the swing lows becomes the hypotenuse.

A recent spike in the buying pressure behind the pioneer cryptocurrency allowed it to break the overhead resistance, as illustrated. At the moment, ADA price could shoot up by 22% based on the ascending triangle formation, with a target determined by the distance between the two highest points of the pattern and adding it to the breakout point.

ADA/USD four-hour chart

ADA/USD price chart by Tradingview

The Relative Strength Index (RSI) affirms the bullish outlook after holding above the midline. As the RSI moves toward the overbought region, ADA price uptrend becomes solid. Moreover, the Moving Average Convergence Divergence (MACD) will present a buy signal in the near term if the 12-day EMA crossed above the 26-day EMA. Besides, bulls will remain in control if this technical tool holds in the positive region.

Cardano price intraday levels

  • Spot rate: $1.427
  • Trend: Bullish biased
  • Volatility: Low
  • Support: $1.42
  • Resistance: The 200 SMA

Disclaimer

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

https://coingape.com/

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