Bullish Flag Pattern Sets Cardano Price Breakout Rally to $0.5

Amid the ongoing legal saga revolving around Binance and its former CEO Changpeng Zhao “CZ”, the crypto market continues to suffer in uncertainty with a bearish cloud hovering above them. The eighth largest cryptocurrency Cardano has wavering sideways for nearly three weeks, reflecting no clear initiation will bulls or bears. However, a keen look at the 4-hour time frame shows consolidation is shaping into a bullish flag pattern, which is a precursor of uptrend continuation.

Also Read: ADA Up 5%, Analysts Expect 100% Cardano Price Rally By Christmas

Bullish Pattern Sets Extended Recovery

• The flag pattern breakout could set the ADA price for a 20% upswing
• A potential bullish crossover between the 100-and-200-day EMA would accelerate the buying momentum
• The intraday trading volume in the Cardano coin is $442 Million, indicating a 16% gain.

Source- Tradingview

Amid the October and early November rally, the Cardano Price witnessed significant growth where the price jumped from $0.239 to a high of $0.4, registering 71% growth. However, this rally turned sideways after witnessing the overhead supply at the $0.04 mark and increasing uncertainty in the market. 

The 4-hour time frame chart shows this consolidation is resonating between two converging trendlines, which shows the formation of a famous bullish continuation pattern called FLAG. With an intraday growth of 3.3%, the ADA price has recently rebounded from the lower trendline of the pattern to reach the current trading price of $0.368. 

Until this pattern is intact, the ADA price will continue to go sideways and shrink within a converging space. The newcomers in the market should wait for a bullish breakout from the pattern upper trendline as it would signal the continuation of the recovery trend. 

Under the influence of this pattern, the ADA price is set for potential targets of $0.457 and $0.557.

Will the Cardano Price Fall to $0.3?

 On November 21, the crypto market turned red as new news spread regarding the resignation of  Changpeng Zhao from the CEO post of the Binance cryptocurrency exchange. Thus, with increasing supply pressure in the market, the ADA price is also at risk of falling below the pattern’s lower trendline. Should this happen, the selling momentum would accelerate and may plunge the coin’s price 16% down $0.3.

• Relative Strength Index: Despite the falling RSI slope, the ADA price rising higher reflects that buyers have a stronger hold over this asset.
• Exponential Moving Average: the 20-day EMA slope continues to provide dynamic support to bulls.