Cardano analysis: Is it time to jump into the big climb?

As I’ve suggested over the past few weeks, Cardano continues to thrive. The uptrend I mentioned in my previous analysis is still in effect and a major breakout seems imminent. In this review we briefly discuss this trend.

Furthermore, this analysis looks at the main resistance that will be crucial in the coming days. A break above this level could push the price well above 40 cents.

Finally, it is good to also discuss the bearish pattern. While I don’t expect this pattern to consolidate, it’s still important to consider the bullish and bearish scenarios.

The uptrend is still alive

I first sketched the uptrend on the Cardano chart three weeks ago when the price was at 34 cents. The price is currently up 16% and ADA is trading at close to 40 cents. A pleasant climb that draws attention upwards.

ADA/USDT 1D

The 46 cents is an important price target. This is positive not only because it is well above USD 0.40, but mainly because it is important for the uptrend. An uptrend is characterized by higher highs and higher lows. While we’ve already seen two lower highs, one higher high is missing so far. This can be formed into the red question mark in the image above. But don’t celebrate too soon…

The $0.40 resistance has not broken yet

It’s a real struggle for Cardano to break and hold the 40 cent mark. The price collides with a key resistance that previously acted as a reliable support. When the price broke below this support, it turned into a sustained resistance.

ADA/USD 1D

In the near future, it is quite possible that the price will rise. But how do we know for sure that this is a real outbreak? Just by looking at the daily chart. If the price has closed several daily candles above the resistance, there is a good chance that the resistance has actually broken.

But let’s not get too carried away. A real breakout often takes more. Only if Cardano also manages to close the weekly candle above this level can we say with complete certainty that we are dealing with a solid breakout and not a feint.

Is the Cardano price moving in a bearish flag?

If you go to Twitter’s social media platform and search for cryptocurrency market analysis, you’ll find everything. Many analysts seem to agree that Cardano is currently at a turning point and the price is likely to break out soon.

But there are certainly conflicting voices. For example, some analysts warn that the bull move is actually a bear flag: a bear pattern that could send the price down.

ADA/USD 1D

As shown in the chart above, the price has been moving in an ascending channel with higher highs and higher lows since March – a pattern known as a bear flag. While this pattern itself has a bearish price target if the price were to fall, it is important to emphasize that Cardano shows a lot of strength.

The coin continues to try to break resistance, suggesting that there is a lot of power in the move. We are also seeing a lot of buying volume during the rally, which is also a positive sign.

Finally, I would like to reiterate that Cardano is currently outperforming due to its ADA/ETH and ADA/BTC rating and is likely to outperform Bitcoin and Ethereum in the coming weeks. You can read that in this and this review.

Source: Btc Direct

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