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.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed in this article are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
