Cardano price illustrates a symmetrical triangle pattern on the 12-hour chart with a clear but significant measured move of 50%, putting the all-time high in the crosshairs depending on the resolution direction. However, a tempered outcome of 30-40% is more consistent with the support levels. For now, the governing ADA outlook is neutral.
Cardano ADA is the 5th largest cryptocurrency with a market capitalization of $50 billion, sitting between Binance BNB and Dogecoin.
Almost a month ago, Cardano's price topped and fell 60% into the May 19 low. It was a staggering development for the high-flying cryptocurrency, but it also marked the beginning of a new Cardano ADA price structure forming through these days and weeks of market gyrations.
ADA trade volume during the pattern development has remained predominantly below average with a mild downslope, consistent with the trade volume profile of a constructive symmetrical triangle pattern.
The confluence of the 200 twelve-hour simple moving average with the 2018 high at a price of $1.39 does present a significant obstacle to a downward resolution of the Cardano ADA price triangle.
A daily close below the price of $1.39 level will provide the initial signal that the ADA price triangle is resolving to the downside. A close below the May 29 low price of $1.32 will be the confirmation and should prepare Cardano ADA investors for a test of the May 23 low at $1.04.
Aggressive selling could carry Cardano's price to the convergence of the May low with the 200-day SMA at a price of $0.91, resulting in a 38% decline from the triangle’s lower trend line.
A close above the 50 twelve-hour SMA at a price of $1.65 on a 12-hour chart will encourage the swift return of a strong bid for ADA price, lifting it to the triangle’s upper trend line level at $1.86. A daily close above the upper trend line level should transform into a rally to the all-time high at $2.51, returning 34% for keen Cardano ADA investors.
A clear breakdown will shift the neutral Cardano outlook for the symmetrical triangle. For now, market operators are best served to price swing trade the gyrations using the clear support and resistance levels labeled on the chart.
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