Technical Patterns Suggest Potential Rally to $1
The post Technical Patterns Suggest Potential Rally to $1 appeared on BitcoinEthereumNews.com.
TLDR Cardano price jumps 4.32% to $0.701, forming a bullish engulfing candle Technical analysis shows an inverted head and shoulder pattern pointing to a potential 40% rally toward $1.08 Charles Hoskinson fights allegations about a 318M ADA transfer from unclaimed ICO vouchers Bullish flag pattern on ADA’s 3-day chart suggests a possible 89% rally to $1.33 if breakout occurs Positive funding rates since mid-April signal strong demand for long positions Cardano (ADA) has shown strong momentum recently with a 4.32% price increase to $0.701, creating what analysts describe as a bullish engulfing candle. This price action comes as Cardano founder Charles Hoskinson pushes back against rumors related to a 318 million ADA transfer. The cryptocurrency has been trading in a range between $0.67 and $0.72 over the past week, with support holding firm at the $0.65 level. Despite a 2% weekly decline, ADA has gained 8% over the past month. Technical analysis reveals Cardano is forming an inverted head and shoulder pattern. This bullish pattern shows two swing lows at $0.682 and $0.557, with a recent turnaround from $0.226. The neckline of this pattern aligns with the 23.60% Fibonacci level near the $0.762 supply zone. For a confirmed breakout, Cardano needs to close above this neckline. Cardano Price on CoinGecko If the breakout occurs, price targets suggest a potential 40% rally toward the 50% Fibonacci level at $1.082. The Relative Strength Index (RSI) floating above the halfway line supports this bullish outlook. However, the Chaikin Money Flow (CMF) Index remains negative at -0.08, showing some underlying weakness. A flip in the CMF Index would boost the chances of a breakout. Controversy Over Fund Handling Recent controversy has surfaced regarding Cardano’s governance. Masato Alexander alleged that Charles Hoskinson and Input Output Global (IOG) altered the Cardano Ledger by moving over 318…
Filed under: News - @ May 8, 2025 10:25 am