Cardano (ADA) recently had a price breakout after consolidating in a bullish pattern. Expert Ali pointed this out, predicting a target of $3. Technical signals indicate possible continued upward movement.
Technical Analysis of Cardano
The ADA chart shows that the price started climbing aggressively in early November, then moved sideways in a triangle pattern by December. This pattern usually indicates the continuation of the upward trend. The breakout above the upper trendline of this pattern suggests the potential for significant price appreciation.
Cardano Chart Analysis
The ADA chart integrates Fibonacci retracement and extension levels to highlight potential support and resistance zones. During consolidation, ADA's price found support near the 0.618 Fibonacci retracement level, around $0.74. Currently, immediate support lies near $0.85, while $1.15 serves as immediate resistance. Price targets following the breakout align with Fibonacci extension levels: 1.272 at $1.92, 1.618 at $2.79, and 1.786 at $3.49. The psychological milestone of $3 remains a key point for traders.
Monitoring Market Sentiment
The bullish sentiment around Cardano has grown following this breakout. However, analysts caution traders to monitor for false breakouts or any retracements back into the pennant structure. Volume confirmation remains critical to validate the breakout’s strength.
Cardano's price performance in the upcoming days will likely hinge on its ability to sustain momentum above key resistance levels. While optimism persists, traders are advised to remain attentive to market conditions and ongoing price action.
