Cardano Price Breaks Cup and Handle Pattern, $0.40 Becomes Next Bullish Target
As the cryptocurrency market displays a bullish trend and optimism for a bull run grows, Cardano is currently experiencing a breakout. The completion of a cup and handle pattern suggests a potential rally for ADA with a target price of $0.40.
Cardano, ranked as the tenth largest cryptocurrency with a market cap of $13.29 billion and a 10.76% increase over the past seven days, is showing signs of a healthy recovery. The question now is whether this momentum will help Cardano climb higher in the crypto rankings.
Cardano’s price action on the 4-hour chart reveals a breakout of the cup and handle pattern. The pattern’s neckline is located at $0.36, and recent bullish reversals indicate a rally after the breakout. The breakout has surpassed the 61.80% Fibonacci level at $0.366, with Cardano’s price rising by 12.80% in the last five days, starting from a double-bottom reversal near $0.328 and reaching its current price of $0.37.
The technical indicators continue to support a bullish outlook for Cardano as the recovery gains momentum. The 50 and 200 EMA have formed a golden crossover on the 4-hour chart, and the 100 and 200 EMA are approaching a bullish crossover. The MACD and signal lines have also realigned positively, with bullish histograms making a comeback.
With the formation of a bullish engulfing candle on the 4-hour chart, Cardano’s price action has led to a breakout above the 61.80% Fibonacci level. Fibonacci levels suggest potential targets of $0.381 and $0.399 at the 78.60% and 100% levels as the breakout rally gains momentum. If the momentum continues to increase, Cardano’s price could potentially reclaim $0.40, with the next target at the 1.618 Fibonacci level of $0.452.
On the flip side, key support levels for the breakout rally are at $0.363 and $0.356, corresponding to the 50% Fibonacci level.
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