Cardano has seen a spectacular surge in its price action for the past few months but this might end soon. With ADA’s price approaching an important resistance, there might be a chance for price to retrace/pullback. This is on the higher time frame, however, on the lower time frame, the price is preparing for a bullish breakout.
1-hour chart
Source: ADAUSD TradingView
In the one-hour time frame, the price of Cardano seems to be forming a bullish pattern of an ascending triangle. The breakout from this pattern would push the price higher and into the aforementioned resistance at $0.138.
Since the formation of the pattern, the price has tried to breach this resistance on 3 different occasions but failed. Hence, the upcoming try might break this resistance and provide a surge of at least 7% from the current price.
If successful the surge will be beyond 7%, however, if the bulls/buyers fail to push it through the resistance, then a pullback seems more favorable. This pullback can be seen clearly no the daily timeframe.
1-day chart
Source: ADAUSD TradingView
From the above chart, it can be seen the significance of the $0.138 resistance level. A successful breach would enable ADA to surge freely to a new high but a bounce would result in a retracement that would take the price down to immediate support at $0.1159. Breaching this support would push the price down to $0.0936. The RSI on the daily time frame looks toppy, hence, a retracement seems more likely.
However, this doesn’t mean the breakout surge out of the ascending triangle is not possible. Between the daily and the hourly time frame, there is enough space for ADA to still surge at least 7-10% in the upcoming days.
Climbing from under top 10 to rank 6, ADA, as an altcoin has seen massive gains in the last few months, especially due to the much-anticipated Shelley launch. At press time, ADA stands tall with a market cap of $3.14 billion and a surge of 7-10% on the short term horizon and retracement on the higher time frame.
