Cardano (ADA) appears to move higher following a breakout above a consolidation pattern, fueled by strong fundamentals and heightened buying pressure.
ADA broke strong resistance and recovered more than 10% in a matter of hours.
The partnership between Ardana and Elrond may have caught the attention of investors. The stablecoin protocol on Cardano aims to make EGLD one of the first cross-chain collateral on the platform by connecting both ecosystems.
As the benefits of the Cardano network expand, ADA appears poised to move to higher levels.
Although ADA is up nearly 6% since the breakout, there is still plenty of room for further gains. Linking the height of the triangle to the breakout level shows that ADA can rebound an additional 19% from its recent high to meet its target of $ 2.83.
ADA / USDT 4-hour chart | Source: TradingView
Cardano’s trading history shows that there isn’t much resistance above the current price. The only significant coverage zone is between $ 2.46 and $ 2.53, where nearly 70,000 addresses previously purchased 1.12 billion ADA.
Once this zone is conquered, the price can go higher.
The source: IntoTheBlock
It’s worth noting that Cardano sits right at the top of a strong demand zone, with over 160,000 addresses buying 6 billion ADA at an average price of $ 2.20. The odds are likely to stay in favor of the bulls as long as this demand zone holds.
However, a sudden drop below $ 2.2 could trigger panic selling and push the price down to $ 1.9.
Analyst Benjamin Cowen speak that although ADA has corrected more than 30% from the ATH level, it is still above the bull market support band.
This band is formed by the 20-week SMA and the 21-week EMA, which correspond to the $ 1.88 – $ 1.94 support zone.
However, he believes that after the insane rally from $ 0.02 to over $ 3, ADA needs a longer period of consolidation before breaking out.
As for the timing of the next outbreak, Cowan expects Cardano to move between mid-November this year and March next year. BTC, which continues to move higher after holding above the 20-week MA, should help ADA explode soon.
“If you look at what happened last year, ADA bounced off the bull market support band in mid-November … So if at best Bitcoin continues to climb after holding above the line … 20 week MA, then maybe ADA will The next rally will start in mid-November. “
Weekly ADA / USDT Chart | Source: Benjamin Cowen
You can see the ADA prices here.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Beincrypto