October 3, 2022

Cardano Enters New Bullish Cycle Towards All-Time Highs

2 min read

The sixth-largest cryptocurrency by market cap, Cardano, has gotten the buying pressure needed to resume its bull run following a high correction. Now that sidelined investors have actually re-entered the marketplace, ADA looks primed for brand-new all-time highs.

Cardano Prime for a Massive Bull Run

Cardano broke out of an inverted head-and-shoulders formation after consolidating for more than 2 years.

Moving past the $0.21 resistance barrier on Jan. 4 signaled the start of a new bullish cycle on this altcoin’s pattern. By measuring the range between the head and the neckline of the technical pattern and adding it to the breakout point, ADA faces an upside target of more than 900%.

If confirmed, ADA could see its market value rise towards $2 as forecasted by the inverse head-and-shoulders.

Cardano US dollar price chart
ADA/USD on TradingView Cardano has already gone through an 85 %increase given that it turned the$0.21 resistance level into assistance. This cryptocurrency appears to have peaked at a high of$0.39, which is a cost level not seen given that May 2018. Offered the significance of the milestone, some market individuals took advantage of the bullish impulse to book earnings. The spike in offering pressure around this cost difficulty pushed ADA back to the hidden assistance, from where it bounced off quickly.

From a technical point of view, the downswing was timed by the Tom Demark (TD) Sequential indicator. This technical index provided a sell signal on ADA’s 3-day chart as costs approached $0.39.

The bearish formation led to the 42% correction towards the 61.8% Fibonacci retracement, which is frequently considered the “golden retracement zone due to the high likelihood of a rebound.

Lots of sidelined financiers enjoyed the downswing to get back into the market. As anticipated by the golden retracement zone, Cardano had the ability to restore lost ground and is currently trading around $0.35.

Cardano US dollar price chart

ADA/USD on TradingView A further increase in demand for Cardano might press it above the$0.39 resistance barrier, sending it back on track to satisfy the inverted head-and-shoulders pattern’s target. The Fibonacci retracement indication recommends that ADA will likely discover stiff resistance on its way up around the 161.8%, 261.8%, and 361.8% levels.

These critical interest areas sit at $0.62, $0.98, and $1.35, respectively.

It is worth noting that if ADA fails to move past the overhead resistance, another sell-off may happen. But this time around, the correction could extend towards the 50% Fibonacci retracement level at $0.20.

For that reason, traders need to pay attention to how this cryptocurrency behaves as it approaches the $0.39 hurdle.

Disclosure: At the time of press, the author held Ethereum and Bitcoin.