Latest

Cardano price set for a 10% rally upon a breakout above descending trendline

Cardano price is poised for a 10% rally if it manages to break above its descending trendline. Technical analysis indicates a bullish divergence on the momentum indicators, suggesting potential upward momentum.

Cardano’s price is currently testing its descending trendline, which has been formed by connecting multiple swing high levels from March to July. If ADA successfully breaks above this trendline, it could rise by 10% and retest its daily resistance level at $0.426.

Furthermore, a bullish divergence is observed in the daily chart, where ADA formed a lower low on July 5, while the RSI showed a higher high during the same period. This divergence often indicates a reversal of the trend or a short-term rally.

If Cardano manages to close above $0.426, it could extend the rally by an additional 31% and reach its 50% price retracement level between $0.318 and $0.810 at $0.564.

However, if ADA’s daily candlestick closes below $0.317 and establishes a lower low on the daily timeframe, it may signal a shift in market sentiment, favoring a bearish outlook. In such a case, the bullish thesis would be invalidated, potentially resulting in a 10% decline to the previous low of $0.283 in November 2023.

It’s important to note that this analysis is based on technical indicators and should be taken as a reference rather than a guaranteed outcome. Cryptocurrency markets are highly volatile and subject to various factors that may influence price movements.