Cardano price is showing strong bullish momentum, with analysts highlighting technical setups pointing toward a potential price surge.
According to market analyst Ali, Cardano’s price action on lower time frames reveals the formation of a bullish pattern, a bull pennant.
Falling wedge pattern is also visible on its daily chart. Both patterns suggest a breakout that could propel $ADA to reach the critical $1.00 level in the near term.
Bull Pennant Formation: A Key Indicator for Momentum
The bull pennant formation seen in $ADA is a continuation pattern that suggests that the upwards movement will continue.
This pattern is marked by a consolidation phase that occurs after a highly volatile price move, and the price action forms a triangle where the price fluctuates between two converging support and resistance levels.
For Cardano, this pattern has support price at $0.9430 and resistance at $0.9600. The pennant is at the final stage, which means that a breakout is expected soon.
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If $ADA surges above the resistance level, there may be strong upward movement to $1.00 or even higher, according to the analysts.
It also correlates with increased market trading as more and more traders show interest in this pattern.
The target of the breakout of the bull pennant has been arrived at using the Fibonacci retracement levels.
Majors are at $0.9719 and $0.9956 with the super bull target at the 1.618 Fibonacci extension at $1.0082. It could be used as potential levels of resistance during the expected price appreciation.
Falling Wedge Pattern Reinforces the Bullish Outlook
Besides the bull pennant, the daily price chart of Cardano shows the falling wedge pattern which is a bullish pattern that usually appears at the reversal or continuation of the bullish trend.
This is a formation where two lines are gradually coming closer together, with the price having lower tops and bottoms before breaking upwards as the sellers’ pressure alleviates.
Cardano has already been able to close above the upper resistance trendline of the falling wedge, indicating pickup in demand.
The breakout was also coupled with a rise in trading volume which is indicative of the bull market.
From the falling Wedge pattern, the price target is $1.00, but intermediate resistances stand at $0.93 and $0.95.
The Relative Strength Index (RSI) currently sits at 58.46, reflecting bullish momentum but leaving room for further price gains before entering overbought conditions.
Key Levels for Traders to Watch For Cardano Price
Traders are watching key support and resistance levels to make sure these bullish patterns are valid.
Cardano’s immediate support price at $0.9430 and $0.93 that marks the bottom of the bull pennant as well as, the former resistance of the falling wedge.
To this end, it is significant to keep these support levels in order to provide for the upward surges.
On the other hand, levels of interest close to $0.9600 and the psychological level of $1.00 still look significant.
If price breaks out above these levels and does so with increasing volume, then the bullish patterns will be confirmed and prices could rise even more.
Analyst Ali has also indicated that traders should wait for confirmation before taking positions in trades .
A failure to break through resistance or a breakdown below key support levels will invalidate the bullish trend.
