Can Cardano (ADA) achieve a technical upswing of 22% to USD 1.72?

  • Cardano price retested the X-axis support of the ascending triangle ahead of the highly anticipated rebound to $ 1.72.
  • The near-term technical picture of ADA price remains positive as the bulls gain ground above $ 1.4.

Cardano price gained $ 1 in traction from support in June. The uptrend was initially limited to below $ 1.42, but a recent break above this crucial level gave the bulls a place in the cockpit.

At the time of writing, ADA price is trading at $ 1.425 while it includes the support at $ 1.42. Its immediate uptrend is limited by the 200 Simple Moving Average (SMA) on the 4-hour chart. The 50 SMA also adds credibility to the near-term support that needs to hold to ensure the bulls are focused on the uptrend towards $ 1.72.

Cardano price massively bullish outlook

The upcoming smart contract cryptocurrency went through an extended period of consolidation that began after the June sell-off. While price has hit a series of higher lows since then, the $ 1.42 resistance level continued to prevent Cardano price from advancing further.

Such market behavior appeared to form 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 trendline drawn along with the swing lows becomes the hypotenuse.

A recent surge in buying pressure behind the pioneer cryptocurrency made it possible to break through the overhead resistance, as pictured. Right now, ADA price could rise 22% based on the ascending triangle formation, with a target determined by the distance between the two highest points of the pattern and added to the breakout point.

ADA / USD four hour chart

ADA / USD price chart from Tradingview

The Relative Strength Index (RSI) confirms the bullish outlook after holding above the mid-line. As the RSI moves towards the overbought area, the uptrend in ADA price becomes solid. In addition, the Moving Average Convergence Divergence (MACD) will provide a short-term buy signal when the 12-day EMA crosses the 26-day EMA. Also, if this technical tool holds up in positive territory, the bulls will be in control.

Cardano price intraday level

  • Spot price: $ 1,427
  • Trend: bullish biased
  • Volatility: Low
  • Support: $ 1.42
  • Resistance: The 200 SMA

Disclaimer of liability

The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.

About the author

John is a talented writer with over two years experience who actively contributes to the cryptocurrency industry by providing credible, engaging, and easy-to-read content. His main focus is on cryptocurrency price analysis and industry reporting. Let’s follow him on Twitter @jjisige

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