Cardano price is gasping for air as bulls work around the clock to stay buoyant. The smart contracts token kicked off the year negatively, with declines below $0.30 extending to $0.24. However, ADA has climbed in the last few days and reached a weekly high of $0.27.
A retracement is ongoing at the time of writing, with Cardano price trading at $0.2645. ADA's trading volume in the last 24 hours spiked above $200 million, boasting $9.3 billion in market capitalization. If recovery exceeds $0.30, ADA might displace Dogecoin (DOGE) and become the eighth-largest cryptocurrency.
Traders who bought ADA as it bounced off support at $0.24 are booking profits and adding pressure on resistance at $0.27. Nevertheless, pullbacks are normal even as the price moves to the upside.
Investors could see the retracement as an opportunity to buy more ADA at a lower price level ahead of another 11.7% move due to the formation of an inverted head-and-shoulders (H & S) pattern.
An inverted H&S pattern is bullish, and its appearance suggests the trend is about to change its course to the upside. A break above the neckline resistance reinforces the pattern's validity. In the case of Cardano, the price has already validated the H&S for an 11.7% move to $0.29.
As ADA price falls back from the hurdle at $0.27, bullish traders wait for a rebound from the neckline. This critical support in confluence with the 100-day Exponential Moving Average (EMA) (in blue) at $0.26. Realize that the breakout target equals the length of the H&S pattern extrapolated above the breakout point.
Traders looking for long positions in Cardano may consider booking profits at the 200-day EMA (in purple) and $0.29, respectively. However, extremely bullish investors may wait until
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