Cardano Aims for $0.70 After Bullish Breakout

Cardano appears to be gaining bullish momentum after overcoming a significant supply wall. Technical indicators suggest that as long as ADA continues trading above $0.50 it may have the potential to advance further.

Cardano Turns Bullish

Cardano has breached a critical area of resistance, potentially signaling the beginning of a new uptrend.

ADA has seen its price increase by nearly 23% over the past three days after enduring a three-month-long consolidation period. The sudden upswing was triggered shortly after Cardano sliced through the $0.45 resistance level. Further buying pressure could push ADA towards higher highs as the most significant supply barrier looks to have been breached.

Cardano appears to have broken out of descending triangle on its 12-hour chart. This technical formation anticipates that ADA could rise as much as 51% after overcoming the $0.45 resistance level. If validated, the formation indicates an upside target of $0.70.

However, Cardano needs to hold above the $0.50 support level to have a chance of printing higher highs. Failing to stay above such a crucial price point could be perceived as a sign of weakness, leading to a spike in profit-taking. If this were to happen, ADA could drop to $0.45 or even go as low as $0.38.

The upward price action seen recently coincides with the rally Ethereum has experienced over the past few days after weeks of sluggish price action. Other Layer 1 networks like Solana, Avalanche, Fantom, and NEAR have also increased in market value as the crypto market starts to show signs of life. It remains to be seen whether the overarching macroeconomic weakness that has weighed on risk-on assets in recent months will continue to affect the crypto market going forward.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.