**Cardano Gears Up for a Bullish Turn: Can It Break the $1 Barrier?**
As Cardano hints at forming a potential double bottom, it appears poised for a bullish phase that could challenge the prevailing resistance trendline. Will this upward movement pave the way for a breakout towards $1?
Over the past several months, Cardano has experienced a significant downturn, reflected in its daily chart. Since reaching a yearly high of $0.81 in April, the ADA token has plummeted by 54%, currently trading around $0.37, having struggled to maintain the critical psychological level of $1.
The establishment of lower highs has resulted in a resistance trendline, while a declining triangle formation, coupled with a support level at $0.34, keeps Cardano in a tight spot.
**Emerging Bullish Cycle Within a Triangle**
Cardano’s daily chart illustrates a downward cycle influenced by the overhead trendline, while the token finds support at the $0.34 baseline. Following a 13% decline this week, $ADA has rebounded slightly, rising by 1.65% today, now sitting at $0.370.
With a market capitalization of $13.34 billion, Cardano ranks as the tenth largest cryptocurrency. However, according to Coinglass, nearly $2.5 million in bullish positions were liquidated over Thursday and Friday.
The recent intraday candle suggests a possible bullish recovery as the support level has demonstrated its ability to act as a springboard for rebounds.
The bullish divergence noted in the daily RSI strengthens the likelihood of an upward cycle. However, the bearish trend persists in the MACD and signal lines, with a growing number of negative histograms.
**Could Cardano Hit $1 by Q3 2024?**
Given the bullish divergence, Cardano’s recovery may accelerate in the upcoming week, heightening the chances of a breakout rally above the resistance trendline.
Employing Fibonacci retracement analysis during the correction, the 50% Fibonacci level at $0.56 emerges as a potential target for such a breakout. Beyond this, the bullish reversal could form a rounding bottom, with a neckline at a peak of $0.775.
Thus, a bullish run for Cardano appears likely, especially with the overall market recovery. However, reaching the $1 mark within this quarter seems uncertain. Based on the Fibonacci retracement, the 1.618 Fib level at approximately $1.041 remains a more realistic target for this year.
**Disclaimer:** This article is for informational purposes only and should not be interpreted as financial advice. The opinions expressed herein reflect the author’s personal views and do not represent those of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.
