Cardano price consolidates as traders eye $1 breakout – or deeper correction

Cardano price is trading just under $0.88, showing signs of consolidation as traders are looking at which direction it will go next.

Cardano ($ADA) price is gearing up for big moves, and what happens in the coming days may determine the direction. On Wednesday, August 20, Cardano traded at $0.8763, after a slight daily gain to $0.8763. This comes after the token saw a significant 10% daily decline from levels close to $1.

After reaching $1 earlier in the week, Cardano briefly overtook Tron (TRX) and Dogecoin (DOGE) in market cap. Now, the three tokens are locked in a fight for the 8th spot among the top crypto assets. Each is currently hovering above $30 billion in market cap, with Tron in the lead, followed by Dogecoin.

Cardano’s price could see a breakout

Technical indicators suggest that Cardano’s price is nearing an inflection point. Notably, the price is moving in a triangle pattern, which often leads to big moves, either up or down. Specifically, support and resistance are at $0.88 and $0.98.

If Cardano stays above $1, the token is set for a bullish breakout toward $1.10, $1.15, or even $2. However, a fall below the $0.88 support could signal that a major correction is coming. Still, other indicators suggest that a bullish breakout is more likely.

Specifically, Cardano’s price is also exhibiting a golden cross pattern, which is a classic bullish signal. This rare signal happens when the 50-day moving average crosses above the 200-day moving average. This indicator suggests that $ADA could be set for the start of a longer uptrend.