Cardano ADA price kickstarted a new rally on May 5 with a breakout from a cup-with-handle base, rising above the longstanding trading range and setting ADA new all-time highs. Since the beginning of February, it was the best week and puts ADA price on pace for an additional 30% gain.
Since the breakout from the cup-with-handle pattern base on May 5, ADA price has rallied incrementally with notable spikes in volume on the positive days, consistent with a bullish scenario.
The measured move target for the base is at $2.27, a gain of 55% from the handle high at a price of $1.46 and 30% from the price at the time of writing. The target is slightly higher than the 161.8% extension of the April decline at a price of $2.23.
Cardano's price will need to break above the 138.2% Fibonacci extension of the April decline at a price of $1.95 and, of course, the always challenging round numbers, in this case, $2.00.
Cardano's price could lose support and revert lower. The first necessary level is the 10-week simple moving average at a price of $1.30.
According to information from over 1000 crypto-related channel’s including Telegram groups, crypto reddits, discord groups, and private traders chats, Cardano’s ADA daily social volume has jumped during the past week. The increase in Cardano mentions illustrates that the bullish price action is captivating the retail investor ranks.
However, it is essential to note that the rise in social mentions for Cardano is still well below the feverish levels that accompanied the February and March highs, indicating that the ADA price gains can continue before networks become saturated with the Cardano story.
Breakouts pattern from sustained trading ranges is prone to profit-taking as traders that bought previously failed range price breakouts seek to cover their losses or accrue some profit for their patience. However, as long as the volume accumulation/distribution profile remains ADA bullish, the pullbacks should be limited in percentage and duration.
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