Cardano Just broke out of an Ending Diagonal Pattern on the Daily timeframe.
This breakout indicates that the Altcoin bearish trend is coming to an end, and the ADA/USDT price might be getting ready to rally higher in the coming days. The question now is how high can we expect this bullish rally to take prices?
In this ADA/USDT analysis, we will be breaking down the bullish targets we are aiming for, as well as the key resistance levels to watch out for in the coming days.
The image above is a typical example of what the outcome of an Ending Diagonal Pattern looks like
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Trading The ADA Bullish Rally!
The typical target for an ending diagonal pattern is usually back to the previous Highs. And for Cardano, that previous highs is the $3 price region.
From the current price location we are trading at, this potential bullish rally is a more than 150% surge in the value of Cardano. This makes it a very profitable trade setup for us to take.
However, there is a major key resistance just up ahead and the Cardano bulls must break through it in order to continue the bullish rally.
Key Resistance/Bullish First Target To Watch Out For!
For our first bullish target, we will be looking at the $1.6097 horizontal resistance on the Daily timeframe.
This is a 41% surge in the value of Cardano, and is the best place to take off some profit as we encounter a key resistance on ADA.
This resistance is the first level the bulls will need to overcome in order to extend the ADA rally higher in the coming days. However, a failure to breakthrough it will only see us reversing back in no time.
The Ethereum bullish rally has started, and this bullish rally will remain valid as far as price continues to trade above the ADA previous lows at $0.7550.
A break below this $0.7550 lows invalidates this bullish prediction and points to more sell-off to come. This makes it very important for the Cardano bulls to respect and keep the Altcoin price above this key level on the Daily timeframe.
As for the bullish targets, the first target to aim for is the $1.6097 horizontal resistance level on the Daily timeframe.
We believe the Cardano bulls will encounter massive selling pressure around that area and how price reacts to this key level in the coming days will have a major impact on if we can expect to see a further rally up or expect a sell-off back down.
You can be rest assured that we will keep you up to to date as the the price action develops.
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