Cardano Price Escape From 22-Month Accumulation Sets a Rally Beyond $1
Highlights
- The ADA price is up 6% today, providing a suitable follow to the recent breakout of the cup and handle pattern.
- The coin price trading above the daily EMAs(20, 50, 100, and 200) indicates the near-term trend aligns with a broader bullish trend.
- The intraday trading volume in the ADA coin is $1.5 Billion, indicating a 64% gain.
The Cardano (ADA) cryptocurrency has demonstrated a notable recovery since late January, as its price rebounded from a low of $0.444, marking a significant turnaround for investors surge represents a 75% increase within just 41 days, propelling the price to its current standing of $0.783. This impressive upswing is not just uplifted by broader market bullishness, but also a solid technical formation and increasing market sentiment toward Cardano.
Also Read: Cardano’s Charles Hoskinson Maxes Out Donation For XRP Lawyer John Deaton
Cup and Handle Formation Sets Early Sign For Trend Reversal
One of the most compelling aspects of Cardano’s recent price movement is the completion of a cup and handle pattern, a formation that has been developing for nearly two years. The “cup” part of the pattern represents a period of consolidation and recovery, while the “handle” indicates a slight pullback before a significant price increase.
On March 1st, the ADA price gave a decisive breakout from the neckline resistance of this pattern, signaling the asset entering a high momentum recovery. Last Sunday, the coin price showcased a daily candle with long rail rejection at $0.68 reflecting the buyers witnessing demand pressure at new support.
Moreover, Renowned market analyst Ali (@ali_charts) reports a bullish trend for Cardano, noting a rise in ADA’s active addresses and trading volume. Data from Santiment confirms increased network engagement and whale activity, signaling continued growth and robust health in the Cardano ecosystem.
The uptrend in #Cardano appears healthy! There's a notable rise in daily active $ADA addresses, transaction volume, and transactions from #ADA whales.
This increasing activity signifies strong network engagement and investor interest, positive indicators for continued growth. pic.twitter.com/pIG08GNl7G
— Ali (@ali_charts) March 2, 2024
Under the influence of the pattern, the Cardano price is set to chase the theoretical target of $1.14, projecting a potential target of 47%.
However, this recovery won’t be unidirectional, and coin holders may witness occasional pullback to 20-day EMA.
Also Read: Cardano (ADA) Price Surges 12% In Pursuit of $1, Major Rally Coming?
Technical Indicator:
- Average Directional Index: The ADX slope at 26% projects the buyers hold sufficient momentum to prolong this rally.
- Exponential Moving Average: The fast-moving EMAs 20- and 50-day EMA may provide dynamic support in the current recovery.
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