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Cardano’s recovery is at risk as the broader market faces a demand crunch. Will ADA start a bull cycle in a weekly triangle for a breakout run this week?
With an intraday jump of 4.27%, Cardano ranks lowest in the top 10 crypto-list with a market cap of $12.26 Billion. Trading at $0.341, the intraday recovery creates a bullish piercing candle, teasing a new bull cycle.
As trading volumes increase to support a recovery run, Cardano hands at a crucial support trendline. So, let’s check the ADA price chart to find entry opportunities for the upcoming rally.
Weekly Triangle Holds The Cardano Fate
With a recent bull cycle failing to reach the overhead trendline, Cardano is taking another retest of a support trendline on the weekly triangle. Last week, Cardano fell to $0.27 before a bullish comeback propelled the closing price to $0.328. Thus, the buyers maintain dominance over the $0.30 mark.
Starting the week on a bullish note, Cardano has increased by 4.27% to form a bullish candle. This increases the possibility of a morning star pattern to reignite a bull cycle.
The sudden failure in uptrend delays the bullish crossover in the MACD and signal lines. However, the weekly RSI line maintains similar values despite a drop in bottom formation. Hence, the RSI line reveals a bullish divergence, bolstering the uptrend chances.
4-Hour Chart Reveals Retest Run in Cardano
With a morning star anticipation in the weekly chart, Cardano prepares a large-scale bullish cycle in the shorter timeframes. In the 4-hour chart, Cardano takes another retest of the broken trendline.
As per the Fibonacci levels, a sideways trend is visible between the 23.60% and 38.20% Fib levels. Currently, a small bull cycle is in play with three consecutive bullish candles, heading towards $0.35.
Further, the recovery surpasses the 20 EMA at $0.343, with all the other crucial EMAs (50, 100, and 200) maintaining a bearish alignment at $0.346, $0.361, and $0.379 on the 4H chart.
Will Cardano Surge?
As the broader market sentiment is at a critical stage, the recovery run in Cardano faces multiple hurdles. Based on the Fibonacci levels, ADA taking support at $0.331 reveals underlying strength.
Hence, a bullish breakout of the overhead ceiling at $0.354 will increase the bullish momentum in Cardano. If the uptrend can live, ADA can scale to $0.390 or $0.449 this week.