The crypto community is certainly bullish on Cardano right now. The network is nearing its next update called “Alonzo Purple”, after which smart contracts will be successfully integrated into its system. Its native cryptocurrency ADA has also responded well to market optimism.
The last two days have represented an increase of almost 30% in value from $ 1.47 to $ 1.89. Usually a correction occurs when an alt records such a sporadic jump in a short period of time, but the same is not the case with ADA. The presence of a bullish flag pointed higher before the next wave of selling pressure. At the time of writing, ADA was trading at $ 1.80, up 0.75% in the last 24 hours.
Cardano’s 4-hour chart
ADA’s latest rise formed the flagpole, while its decline of $ 1.90 completed the bullish flag formation. Holding losses between $ 1.70-1.74 would continue to support a bullish thesis and a possible breakout in the coming sessions. In such a case, the next ADA target would be at a psychological mark of $ 2, although there was some resistance at $ 1.97. On the other hand, failure to rise above the upper trend line could result in some movement within the range between $ 1.80 and $ 1.88. Meanwhile, the indicators pointed to some downside, but this was no cause for alarm.
The Relative Strength Index traded flat in the overbought region, justifying stabilization. However, it would likely remain above 60 due to a healthy number of buyers in the market. After prices failed to break down the $ 1.90 mark, the DMI lines began to converge as the ADA uptrend waned. Even the MACD noticed a decrease in bullish pressure. Even though these were bearish signals, this was normal in a bull flag setup that generally notices a dip before a bullish breakout.
The ADA was expected to break north from its bull flag and the focus of attention shifted to the $ 2 mark. If prices do not drop $ 1.90 over the next 24 hours, the ADA could trade sideways between 1, $ 80 and $ 1.90 before the next rally.
This is a machine translation of our English version.
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