cryptonewsz.com
During Wednesday’s market session, the crypto market experienced a strong inflow as Bitcoin stands inches away from the $100k breakout. This bullish momentum is likely to extend to the altcoin market, where major cryptocurrencies, including $ADA, are showing signs of a potential breakout. The Cardano price doorstep of this 3-year resistance with a bullish pattern in play signals potential for a directional uptrend.
By press time, the $ADA price trades at $1.19 with an intraday gain of 0.46%. According to Coingecko, the asset’s market cap stands at $42.6 Billion, while the $2.6 Billion.
Key Highlights:
- The rounding bottom pattern displays growth potential for Cardano price past the neckline breakout.
- The $ADA price is 3.6% away from surpassing the 3-year-long resistance of $1.24.
- The momentum indicator ADX in the overbought region hints at a potential pullback before buyers resume the prevailing uptrend.
Rounding Bottom Formation Signals a Bullish Roadmap for Cardano Price
Since last month, the Cardano price has recorded a massive rally from $0.32 to $1.19, registering a 267% rally. The recovery started with the U.S. election and gained further traction as Cardano patterned with BitcoinOS (BOS) and witnessed whale accumulation.
An analysis of the weekly chart shows the $ADA’s potential for a prolonged uptrend with a rounding bottom pattern. Shaped like a “U,” it develops over three phases: a gradual decline, a stable consolidation forming the rounded base, and a breakout characterized by rising prices.
Currently training at $1.2, the Cardano price is 3.6% short from challenging the 3-year-long neckline resistance of $1.24. According to Coinglass data, $ADA futures open interest surged from $217 million to $1.1 billion amid the price rally, highlighting a significant uptick in market activity and trader confidence in Cardano’s price trajectory. This sharp increase indicates strong anticipation of heightened volatility or a bullish breakout.
If the pattern holds true, the $ADA buyers could chase a $2.2 target, indicating a potential growth of 82%.
ADX Signals Potential Pullback Ahead of Breakout
While Cardano price shows potential for a key breakout, the momentum indicator ADX at 60% highlights an overextended rally in the daily chart. Thus, the $ADA coin could need a potential pullback to recuperate the bullish momentum before the key breakout.
The 4-hour chart displays a dynamic support trendline whose breakdown could signal upcoming correction in this altcoin.