Cardano’s price action has shown signs of recovery after a recent dip, with the cryptocurrency bouncing from its lower support level. Over the past 24 hours, Cardano has gained close to 1%, reaching an intraday high of $0.7613. This small but notable rebound has drawn the attention of technical analysts, and an interesting analysis reveals that the asset has been trading within a well-defined chart pattern for several months.
Particularly, technical analysis of the Cardano/USDT daily timeframe chart indicates that the cryptocurrency is trading within a triangle and could now be gearing up for a rally to $1.5.
Triangle Formation Suggests Cardano Could Be Set For 100% Move
A recent analysis on TradingView highlighted that Cardano has been trading within a triangle pattern on the daily timeframe since November 2024. The pattern is characterized by a series of lower highs and higher lows, shaping a formation of converging lower and upper trendlines. The latest price decline saw Cardano drop from a high of $1.1747 before finding support at the lower boundary of the triangle at $0.647.
Based on its performance within the triangle over the past six months, the next move after this support is expected to be another rally toward the upper trendline. The recent upward movement seems to reinforce this formation, potentially marking the beginning of a push toward the upper resistance level.
The key takeaway from this triangle formation is the potential for an explosive move once Cardano retests the upper trendline of this triangle again. According to analysts, if Cardano’s price breaks above the upper trendline, it could trigger a surge toward $1.5, representing a 100% rally from the current price level.
Can ADA Reach $1.5? Resistance And Breakout Zone To Monitor
The triangle’s upper trendline currently serves as the most critical resistance level for Cardano’s price. Cardano has tested this resistance approximately three times since November, making any forthcoming approach pivotal for its price trajectory. If buyers can build enough momentum to push the price past this barrier, a rapid breakout could ensue, potentially propelling the asset toward the anticipated $1.5 target. However, a rejection remains a possibility, especially as the market has shifted into a bearish sentiment in recent days.
Market sentiment will play a significant role in determining whether Cardano achieves its projected price target. The overall trend of the crypto market, particularly Bitcoin’s movement, will influence how swiftly Cardano can reach this level. The speed at which Cardano approaches the upper trendline will be crucial in determining if there is enough momentum to break above it.
At the time of writing, Cardano is trading at $0.7205, with the possibility of retesting the support trendline again in the next few hours.
