Cardano (ADA) Price Rally Is Far From Over, Here’s Why
13 Marzo 2024 - 8:00PM
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Cardano (ADA) has notably trailed behind that of its contemporaries
in the ongoing crypto bull run. While Bitcoin has surged to record
new all-time highs, alongside a suite of other altcoins, ADA
remains approximately 77% beneath its peak historical value.
However, emerging technical patterns and market dynamics suggest
that this trend could be poised for a reversal, with ADA
potentially gearing up to narrow the gap. Cardano Bull Flag
Formation: An In-Depth Look Central to this analysis is the bull
flag pattern in the ADA/USD weekly chart. The bull flag pattern
observed here is composed of two primary elements: the flagpole and
the flag. The flagpole is a significant vertical ascent in price,
representing a rapid increase in buying pressure. For ADA, this
pole formed from mid-October till mid-December and reflects an
approximate 185% surge. The flag, following the pole, is a period
of consolidation with a downward slope, resembling a flag on a
pole. For ADA, the pole developed from mid-December to early
February. A subsequent breakout above the flag can often lead to a
price rally proportionate to the initial pole’s height. Related
Reading: Cardano (ADA) Price Alert: Analyst Predicts 60% Rally In
Next 7 Days The Cardano price already broke out and surpassed the
crucial resistance at $0.685. If ADA further follows this technical
playbook, the rally is far from over. The projected target would be
an 185% increase from the consolidation zone’s breakout point,
placing the price close to the Fibonacci 0.382 retracement level,
which is around $1.35. Remarkably, the Cardano price must first
overcome the 0.236 Fibonacci retracement level at $0.92, an area
where greater selling pressure and possibly a shorter consolidation
can be expected. Golden Cross And More Bullish Arguments The chart
also teases the formation of a golden cross, a bullish signal where
a shorter-term moving average (the 50-week EMA) crosses above a
longer-term average (the 200-week EMA). Such crossovers can often
signal a shift in momentum from bearish to bullish over the long
term, and their significance is heightened on a weekly chart, which
filters out short-term market noise. Traders often view this
crossover as confirmation of a trend reversal, with the potential
to catalyze sustained buying activity. For ADA, this could be the
final confirmation of a strong bull move. Related Reading: Cardano
Price About To Explode: Crypto Pundit Reveals Next Target Beyond
that, the weekly chart for ADA presents a broader narrative. The
Relative Strength Index (RSI) sits just above the overbought
threshold at 74, which indicates strong buying momentum with more
room to the upside. The volume, though lower than during the peak
periods of 2021, is consistent, suggesting a stable interest in ADA
trading without the panic sell-offs seen during sharp declines.
Moreover, a series of Exponential Moving Averages (20-week,
50-week, 100-week, and 200-week) provide further context as ADA is
trading above all of them. Notably, the 200-week EMA has recently
acted as a very strong support for the price, indicative of
long-term bullish sentiment. The 50-week EMA is trending upward,
which could solidify support levels in the intermediate term. The
100-week and 200-week EMAs are further below the current price,
potentially serving as long-term support levels in case of a price
retracement. In addition, the Fibonacci retracement levels drawn
from the all-time high to the low of the ADA bear market provide
long-term price targets. Following the bull flag conclusion, the
0.5 level at $1.697, marking the halfway point of the previous
swing high to low, could serve as a next target for the bulls.
Thereafter, the 0.618 Fib at $2.04, the 0.786 Fib at $2.54 and
finally the all-time high at $3.17 would be subsequent price
targets. In conclusion, while the bull flag and the impending
golden cross are the stars of the show, other factors such as
moving averages, RSI, and Fibonacci levels add depth to the bullish
narrative for the Cardano price. Featured image from Shutterstock,
chart from TradingView.com
Grafico Azioni Cardano (COIN:ADAUSD)
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Da Mar 2024 a Apr 2024
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