Cardano (ADA) is on fire, surging 35% in the past week and eyeing the $1 milestone.
Cardano’s ADA has been making waves in the cryptocurrency market, with a recent surge of over 35% in the past week. As the altcoin approaches the $0.77 mark, analysts are predicting that a significant rally could be on the cards.
Technical Analysis: A Bullish Outlook
According to crypto analyst Josh from Crypto World, ADA is currently facing resistance at the 50% Fibonacci retracement level, situated between $0.82 and $0.83. A successful break above this level could propel ADA towards the golden pocket zone, which lies between $1.12 and $1.23. This represents a potential 30-43% upside from current levels.
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A Bullish Pattern Emerges
ADA is forming a bullish continuation pattern known as a symmetrical or horizontal triangle. This pattern suggests that the price could continue to rise after breaking out of the current range. A successful breakout could lead to a significant rally towards the $1.18 level.
Cardano’s Outperformance Against Bitcoin
When compared to Bitcoin, Cardano has been a standout performer. The ADA/BTC pair has recently bounced off a key support level, which has historically been followed by significant bullish moves. This suggests that Cardano could be entering a new bull market against Bitcoin.
Read more:Cardano’s Decoupling Act:On-Chain Activity Soars as ADA Rockets!
A Bullish Divergence Signals Hope
A bullish divergence is forming on the ADA/BTC chart, indicating that the long-term bearish trend against Bitcoin may be coming to an end. A higher low or higher high on the chart would confirm this trend reversal.
Read more:Cardano (ADA) Soars: A Potential $6 Rally?
Conclusion
While Cardano’s recent price surge is impressive, it’s important to exercise caution and conduct thorough research before making any investment decisions. The cryptocurrency market is highly volatile, and prices can fluctuate rapidly.
However, with a bullish technical outlook, strong market sentiment, and the potential for a new bull market against Bitcoin, Cardano could be poised for significant gains in the near future.
