Cardano’s ADA has shown impressive performance, up by 35 percent in the last seven days. The altcoin is currently trading near the $0.77 levels and analysts predict that ADA will soon hit the $1 mark.
According to analyst Josh of Crypto World, Cardano is facing resistance at the 50% Fibonacci retracement level, located between $0.82 and $0.83 on the weekly chart. This is an important level to watch, as it may limit short-term price movement. However, a confirmed breakout above $0.83, supported by strong candle closes, could push the price toward higher targets.
Bullish Breakout Potential
Once Cardano breaks above $0.83, the next major target lies between $1.12 and $1.23, marked by the golden pocket zone. This range is a key price area for further upward movement. The larger trend remains bullish, with Cardano forming higher highs and higher lows, hinting at an ongoing momentum.
Short-Term Price Pattern
ADA is forming a bullish continuation pattern known as a symmetrical or horizontal triangle. This pattern suggests the price could continue rising after breaking out. The price target for this pattern is approximately $0.85, and a larger breakout could see a 30% to 43% gain, with a potential move to $1.18.
However, a confirmed breakout above $0.83 would be necessary to move towards these higher price targets, and any failure to break this resistance could lead to a short-term pullback.
Cardano vs. Bitcoin
Looking at the Cardano/Bitcoin (ADA/BTC) chart, Cardano has recently outperformed Bitcoin, showing strong bullish momentum. The ADA/BTC chart is bouncing off a key support level, which has historically been followed by significant bullish moves. The last time this occurred was in late 2019 and early 2021, leading to major rallies.
Bullish Divergence
A bullish divergence is forming on the ADA/BTC chart, signaling the potential end of a long bear market against Bitcoin. To confirm that Cardano is indeed entering a new bull market, we need to see either a higher low or higher high on the chart.