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


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  • Cardano
    price
    is
    testing
    its
    descending
    trendline,
    a
    breakout
    above
    it
    signals
    a
    potentially
    bullish
    move
    ahead.

  • Technical
    analysis
    shows
    that
    ADA
    has
    formed
    a
    bullish
    divergence
    on
    a
    momentum
    indicator. 

  • A
    daily
    candlestick
    close
    below
    $0.317
    would
    invalidate
    the
    bullish
    thesis. 

Cardano’s
(ADA)
price
is
revisiting
its
descending
trendline,
and
a
breakout
above
it
signals
a
bullish
move.
ADA
is
supported
by
a
bullish
divergence
observed
in
both
the
Relative
Strength
Index
(RSI)
and
the
Awesome
Oscillator
(AO),
suggesting
potential
momentum
for
an
upward
rally.


Cardano
price
shows
potential
for
a
rally

Cardano
price
is
retesting
its
descending
trendline,
which
is
drawn
from
joining
multiple
swing
high
levels
from
late
March
to
early
July.

If
ADA
breaks
above
the
descending
trendline,
it
could
rise
10%
to
retest
its
daily
resistance
level
of
$0.426.

Additionally,
the
formation
of
a
lower
low
in
the
daily
chart
on
July
5
contrasts
with
the
Relative
Strength
Index’s
(RSI)
higher
high
during
the
same
period.
This
development
is
termed
a
bullish
divergence
and
often
leads
to
the
reversal
of
the
trend
or
a
short-term
rally.

Moreover,
if
ADA
closes
above
$0.426,
it
could
extend
the
rally
by
an
additional
31%
to
revisit
its
50%
price
retracement
between
$0.318
and
$0.810
at
$0.564.

ADA/USDT daily chart


ADA/USDT
daily
chart

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
dynamics
that
favors
bearish
sentiment.
Such
a
change
could
invalidate
the
bullish
outlook,
leading
to
a
10%
crash
in
the
Cardano
price
to
the
previous
low
of
$0.283
on
November
1,
2023.