By Nathan Ferguson
An ascending channel pattern has increased Cardano’s efforts to overcome the resistance at $0.55 within the last six weeks. Moreover, the consistent hover beyond the Bollinger Bands’ basis line indicated a short-term buying superiority.
Breaching the $0.55 hurdle might see buyers striving for more before the pattern’s reversal tendencies emerge. While publishing this blog, ADA traded at $0.5763, gaining approximately 2.85% within the past 24 hours.
Cardano Daily Timeframe
The previous setup’s breakout opened the path for sharp upward channel recovery on ADA’s daily chart. Meanwhile, the price action overcame the squeeze phase as the Bollinger Bands’ basis line maintained northbound tendencies. The altcoin would likely see heightened volatility within the upcoming days.
A decisive closing beyond the upward channel’s midline might support the altcoin to test the pattern’s upper trend-line. In such a case, possible targets would rest at $0.63 – $0.65. a closing beyond this mark would push Cardano into discovery mode.
Moreover, the recent price surge witnessed a corresponding uptick in trading volume, a +36% within the previous 24 hours. A likely selling revival from the nearest resistance range might pose short-term recovery hurdles. An eventual closing beneath the pattern would present a selling sign.
Reasoning
The RSI (Relative Strength Index) exhibited a visible bullish edge as it breached the 59-level resistance (current support). This trajectory might favor buying activities until substantial reversals from the indicator’s overbought territory.
Moreover, the on-balance volume validated the overall bullish narrative as it replicated ADA’s higher highs and troughs. Also, the DMI reiterated previous readings, but the ADX flashed a briefly feeble directional bias.
Final Thought
As buyers find a break beyond the $0.55 mark, Cardano buyers might target to stretch ADA’s upside in the present upward channel. Targets would stay as highlighted above. Furthermore, evaluating Bitcoin’s price movements remain crucial for profitable undertakings.
Bitcoin maintained a bullish stance while publishing this post, trading 1.12% up within the last day at $24,854. Meanwhile, the bellwether crypto fails to secure a decisive move past $25K, briefly surpassing the mark before slight retracements emerge.