Cardano Bulls Set Sight on $2+, ADA/USD Firm above $1 in a Break Out
There is a sense of confidence and hope in the broader crypto community. It could stem from the swinging BTC prices, but optimism is from what lies ahead for Cardano followers. Technically, candlestick arrangement backs buyers, and ADA/USDT prices...
There is a sense of confidence and hope in the broader crypto community.
It could stem from the swinging BTC prices, but optimism is from what lies ahead for Cardano followers.
Technically, candlestick arrangement backs buyers, and ADA/USDT prices are sure to inch higher—if not soak determined sellers’ deluge.
Cardano Market Performance
Generally, ADA prices are inside a tight trading range as visible in the daily chart.
Accordingly, the coin is stable relative to the USD, with comparatively low trading volumes suggesting possible apprehension among traders.
Nonetheless, ADA prices appear resilient, gradually inching higher even though gains are not clear cut to warrant loading on pullbacks.
Even so, what’s encouraging from a technical point of view is the close above the middle BB and bulls sustaining the uptrend. Notably, from the daily chart, ADA prices are, for the fourth consecutive day, perched above the flexible support—former resistance level—in what appears to be a weak bullish breakout.
Trading volumes (participation) may be tapering off, but notwithstanding, the overall resilience is interpreted as a positive development.
Note that buyers’ stamina and ADA stay above $1 also coincides with ADA/USD price action on the good side of the multi-week trend line.
There has been no violation of the primary support line. Looking from a top-down approach, ADA’s uptrend, even after worrying about losses in May and June, is valid.
ADA/USD Breakout, Targets at $1.8
As such, it explains the stream of bullish calls from various traders.
Aforementioned, ADA/USD prices broke above a descending triangle. It has been affirmed by another trader on Trading View, IWealthCommunity.
Because of this, one trader on Trading View is confident in buy trend continuation.
Yuriy_Bishko is hopeful of more gains towards $1.5 and beyond.
From the 1HR chart, every low could be a suitable buying opportunity. To prevent buying “bull traps,” the analyst recommends buying the retest after the first breakout above $1.45.
Bitcoin Rally to lift ADA bulls
On the same platform, another trader, FX_Professor, is banking on Bitcoin’s recovery as the tailwind for ADA in the days ahead.
In his view, a rallying BTC may trigger demand for ADA, causing it to lift up towards $1.8 and $1.9.
Historical data shows that ADA prices tend to rise whenever BTC rallies.
This positive correlation may sometimes fail whenever fundamentals diverge but often valid—and therefore applicable.
Cardano is “Holding Strong”
On YouTube, a trader—MindYourCrypto, notes that ADA/USDT prices hold strong above $1.
The uptrend will be stronger, more so if there are higher highs of MACD histograms and cross-overs is above the zero line.
Technically, this formation builds a strong case, especially if there are further higher highs in signal and MACD lines crossovers.
Another big confirmation of ADA bulls will be RSI reversing and increasing to reflect demand and momentum buildup.
If all these happen, ADA/USDT prices will easily glide past $1.5 in a buy trend continuation pattern where optimistic bulls can aim for H1 2021 highs of $2.4.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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