Analyst Reveals Potential Trigger For A 32% Cardano (ADA) Rally
08 Fevereiro 2024 - 10:30AM
NEWSBTC
An analyst has explained that based on a pattern forming in the
Cardano price, a 32% rally could take place, if a close above this
level can happen. Cardano Has Been Forming A Descending Triangle
Pattern Recently In a new post on X, analyst Ali has talked about a
Descending Triangle forming in the daily price of Cardano. The
“Descending Triangle” refers to a pattern in technical analysis
(TA) that, as its name suggests, looks like a triangle with a
downward slope. The pattern is made up of two lines, the first of
which is a slopped line connecting lower highs in the price, while
the second one is horizontal (that is, parallel to the time-axis)
and joins together a series of lows. Related Reading: Bitcoin
Coinbase Premium Is Negative: What It Means For Price Recovery The
upper line of the pattern provides resistance to the price, so it
can be a likely point of reversal for it. Similarly, the lower line
may provide support, so bottoms can be probable at it. A break out
of either of these lines implies the continuation of the trend in
that direction. This means that a breakout above the triangle can
be bullish for the asset, while a drop under it can prove to be a
bearish signal. Like this pattern, there is also another pattern in
TA called the Ascending Triangle. This pattern works similarly,
except for the fact that the two lines are switched around (that
is, the slopped line is the bottom line and connects together
higher lows). Now, here is the chart shared by Ali that shows the
Descending Triangle pattern that has recently been forming for
Cardano on its 1-day price: Looks like the price is currently
making a retest of the upper line of the pattern | Source:
@ali_charts on X From the graph, it’s visible that Cardano’s latest
sharp upward surge means that cryptocurrency is now retesting the
upper line of this Descending Triangle. If the historical pattern
is anything to go by, a break above could be a positive sign for
the price. “A sustained daily close above $0.53 could lead to the
start of a 32% rally, potentially pushing $ADA up to $0.68!” notes
the analyst. Ali has chosen a target 32% higher as the height of
the Descending Triangle was equal to a price swing of 32% as well.
Related Reading: Microstrategy Buys More Bitcoin: Here’s How Much
Profit It Holds Now Naturally, this bullish outlook would only be
if a break can truly take place for the cryptocurrency. A rejection
here is still a possibility, as it has already happened a few times
over the course of this pattern’s duration. ADA Price The past 24
hours have been bullish for the cryptocurrency sector as a whole,
but Cardano has clearly pulled ahead of the crowd as it has
registered returns of almost 10%. Following this surge, the coin
has managed to break above the $0.53 level. The asset now has to
hold above this mark if the Descending Triangle break has to
register. The price of the coin has observed some sharp bullish
momentum over the past day | Source: ADAUSD on TradingView Featured
image from Shutterstock.com, charts from TradingView.com
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