Cardano has finally broken through its $1.38-$1.40 price range after a period of rangebound movement. At the time of publication, the breakout had already seen an 8% increase in value, and its mid-long term outlook appeared promising. The rate of acceleration now depends on how ADA interacts with the resistance levels depicted on the chart.
ADA was trading at $1.48 at the time of writing. On CoinMarketCap’s crypto-rankings, the cryptocurrency was ranked fifth.
Cardano Chart for the Day
For the first time in over a month, ADA’s breakout above $1.40 caused the price to topple its 50 percent Fibonacci Extension. A successful close above this region would highlight the next targets at the Fibonacci Extensions of 61.8 percent ($1.74) and 78.6 percent ($1.94). Surprisingly, the Visible Range revealed a high level of interest in ADA at $1.94, but little trading activity above this level.
This meant that only weak resistance zones stood in ADA’s way of reaching its May ATH levels. In the event of a pullback, the Fibonacci levels could also act as potential support levels.
Despite ADA’s consolidation, the RSI remained above 50, indicating a strengthening market. However, its foray into overbought territory could benefit from a reversal before ADA’s next leg forward. Buyers must avoid a drop below $1.35 in this case, as this would negate a bullish thesis.
While the RSI showed some warning signs, the DMI indicated that ADA’s uptrend was gaining traction. The Squeeze Momentum Indicator depicted a squeeze release, emphasizing the possibility of instant gains due to higher volatility.
Cardano’s ATH is still a long way off, but breaking through the $1.40 barrier was a significant step forward. The 61.8 percent ($1.74) and 78.6 percent ($1.94) Fibonacci Extensions are now the next targets, with both pushing ADA towards $2.46.
However, a minor downturn before the next upswing is possible. Longing the altcoin at the many Fibonacci levels highlighted on the chart allows traders to profit.