The current trading week is characterized by an upward trend on the crypto market and Bitcoin and Co are starting the new year positively. The price of the main currency BTC increased more than 2 percent this week and is currently testing the resistance at $ 17,000 again. However, the trend is stronger for some altcoins. The price of Ethereum rose almost 6 percent and the Binance Coin also rose more than 6 percent.
However, this development is clearly surpassed by Cardano. According to figures from coincodex.com, ADA/USD is trading more than 12 percent above last week’s rate at the time of publication. Of course, this bullish momentum is raising hopes among investors that the bottom may now be there and the bear market may end just in time for the start of the year. Some analysts are even seeing a new altcoin rally starting as many cryptocurrencies are posting double-digit gains this week.
So is now a great time to buy Cardano? Or is it just another trap set by the bears to lure investors into the market and then liquidate their trades with a quick and sharp selloff? Kryptoszene.de uses the ADA/USD chart to analyze potential price targets for the Cardano course.
Cardano price supported by a parabolic curve – so far!
The trend for ADA/USD looks very encouraging on the small 1 hour chart. Technical analysis shows that the price bottomed at just below $0.24 on December 30 and has been growing strongly ever since. A parabolic rising curve acts as an important support, which ADA/USD was able to use repeatedly as a support zone during its small bull run to create higher highs and higher lows.
However, it is typical for such a parabolic curve that it becomes steeper and steeper and the price has to rise faster and stronger to stay above this support. Therefore, while such a move can be characterized by large growth in the short term, as seen in ADA/USD, there is a risk of a break in the curve and then a large correction could occur.
Looking at the hourly chart, the parabolic curve peaked the price of Cardano above $0.28 yesterday. From the March 30 low, ADA/USD is already up as much as 17 percent from the lowest levels. However, the altcoin failed to continue this run so far today and corrected to around $0.275. Although this is only a mild correction so far, it is a major red flag that ADA/USD has lost support from the parabolic curve, even confirming it by retesting an hourly candle as new resistance.
A profitable chart formation can take ADA/USD to $0.31
In the short term, there is a fairly high probability that the ADA/USD rate will continue to correct, unless another explosive rally fails to find support back on the parabolic curve. However, the 1 hour chart shows a potentially bullish pattern for ADA/USD. Therefore, the price could form a so-called inverted head and shoulders pattern. The head and shoulders formation is considered bearish according to technical analysis. However, if this pattern has its head and shoulders to the south, it is a potential bullish sign for the trend ahead.
If Ada/USD succeeds in breaking the rising resistance line around $0.28, this chart scenario could emerge. In this case, the technical price target for Cardano price is around $0.31 depending on the breakout time. So the course could continue its upward trend and rise more than 10 percent again in the coming days. However, investors who want to trade this scenario on a crypto exchange should wait for ADA/USD to break through the mentioned resistance line and confirm it with a retest as a support zone.
A breakout on the daily chart can herald a Bull Run to $0.52
I hope for all Cardano buyers that the bottom may actually be in place, causing a larger formation to appear on the daily chart. Kryptoszene.de already analyzed this pattern in detail in its previous analysis of the Cardano course and named possible price targets. Meanwhile, Ada/USD managed to break out of this wedge falling to the upside. First, price broke down the support line of this formation. However, it seemed that this was just a fake out and the price not only came back into the pattern in a short period of time, but continued the uptrend to break out above the resistance.
The falling wedge is a bullish pattern following a technical probability. If ADA/USD continues this trend movement, it could catapult the price to a technical price target of $0.52. Compared to the current price, this would be a further increase of more than 90 percent and therefore could also offer a good investment opportunity for traders. With 10X leverage, experienced investors can see a 900 percent return on this potential move at best.
Bears still in control of the market? Cardano 91 percent lower than the all-time level
However, caution is still required as the price of Cardano is still clearly going down on the larger chart image. From the all-time high of $3.10 hit on September 2, 2021, ADA/USD is still down 91 percent and has been consistently making lower lows and highs ever since. In order to break through this downtrend, which has lasted for more than 16 months, the price would first have to rise above the $0.33 mark again. Because here is the previous stage of consolidation. Further resistance can be expected in a possible bull run at $0.37 and $0.42.
However, massive resistance can be expected for ADA/USD at the $0.5 mark at the latest. There is still a long way to go before the big consolidation phase at 1 dollar, which has regularly been relevant as a support and resistance zone in recent years, and the price would have to almost quadruple to reach this level again .
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