Crypto Analyst Spots Bullish Pennant for Cardano (ADA) – But There’s a Catch

Cardano’s native token ADA has started 2024 with relatively muted price action, trading around $0.61 with minimal movements in the first 2 days of the new year. Price is currently down 9.90% from its 52-week high of $0.67 reached in 2023.

According to analysis from altFINS, near-term momentum indicators are showing mixed signals – Bearish based on the MACD crossover but Bullish based on the RSI crossing above 50. ADA’s price is not currently overbought or oversold based on its RSI level between 30 and 70.

From a technical analysis perspective, ADA appears to be trading in an Ascending Triangle pattern with resistance around $0.65. As per the analysis, a break above $0.65 could signal a continuation of the uptrend with potential upside towards $0.75.

Traders could consider setting a price alert at $0.65 to monitor a possible breakout. Until then, range-bound swing traders could aim to buy near support and sell at resistance as long as the triangle trendlines remain far apart.

Notable crypto analyst Captain Faibik has also spotted a Bullish Pennant formation in ADA’s price chart. As he explains – “$ADA Bullish Pennant formation..!! Looks Promising for the Another +30-40% Bullish Rally..” A pennant is typically seen as a continuation pattern, marking a period of consolidation before eventual breakout.

If ADA does break out from this pennant structure, the analyst’s upside target sits around 30-40% from current levels.

So in summary, while ADA price action has been relatively quiet so far in 2024, key technical patterns may be pointing to building momentum before the next major move. Both the Ascending Triangle and Bullish Pennant could precede significant upside if ADA is able to break out above the $0.65 level. Crypto traders should be monitoring these patterns closely over the coming days/weeks.

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Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!