🔥🔥🔥 Cardano price set for a 10% rally upon a breakout above descending trendline
Cardano Price Tests Descending Trendline: Bullish Move Possible
- Cardano ($ADA ) is currently testing its descending trendline, which could signal a bullish breakout if surpassed. Technical analysis reveals a bullish divergence on momentum indicators, suggesting potential for an upward move.
Bullish Potential:
- Cardano’s price is revisiting its descending trendline, drawn from swing highs between late March and early July. A successful breakout above this trendline could drive ADA up by 10% to test the $0.426 resistance level.
- The bullish divergence observed on both the Relative Strength Index (RSI) and the Awesome Oscillator (AO) supports this potential rally. This divergence often indicates a trend reversal or short-term rally.
Rally Scenarios:
- If ADA closes above $0.426, it may extend its rally by 31% to reach the 50% retracement level between $0.318 and $0.810, approximately $0.564.
Bearish Risks:
- Conversely, if Cardano’s price closes below $0.317 and forms a lower low on the daily chart, this could signal a bearish shift. Such a move might invalidate the bullish outlook and potentially lead to a 10% decline to the previous low of $0.283 from November 1, 2023.
Source - fxstreet.com
