Cardano (ADA) is showing signs of strength as it heads into the Chang hard fork, bouncing back from a period of downward trading.
The price of ADA has increased by 2.3% in the last 24 hours, reaching around $0.408 during European business hours on Tuesday. This rise comes just days before the much-anticipated Chang hard fork.
ADA Breaks Out of Falling Wedge Before Hard Fork
Cardano (ADA) hit a yearly high during the March mini bull run before experiencing a decline. During this downturn, ADA’s price action formed a falling wedge pattern, which broke out yesterday.
Despite a death cross occurring on May 11, 2024, this pattern can be reversed with sufficient bullish momentum. Currently, ADA is trading below the 50-day and 200-day simple moving averages, but this might change soon.
There is a chance that the recent breakout could be a false signal. A strong confirmation of the breakout would involve ADA reaching the low resistance level around $0.47 and retesting the upper trendline of the falling wedge at approximately $0.37 before potentially moving higher. If ADA falls back inside the falling wedge during this retest, the breakout would be considered invalid.
If bullish momentum continues, ADA could rise by 98% back to its yearly highs, with potential resistance around $0.47, $0.54, and $0.60. Conversely, ADA might find support around $0.37 and $0.33 before bouncing back.
An alternative scenario is that Cardano could enter another consolidation phase between $0.47 and $0.36, which would also invalidate the breakout.
Data from Coinalyze shows that ADA’s Open Interest (OI) has increased by 3.5% in the last 24 hours, with 70% of traders going long and 30% shorting the asset.
Cardano Community Excited for Potential Breakout Ahead of Chang Hard Fork
The ADA community is buzzing with excitement over recent price developments, hoping they signal a full breakout. The upcoming Chang hard fork is crucial for the Cardano ecosystem as it aims to enhance decentralization. Additionally, the hard fork will unlock 1.5 billion ADA, accessible only through a DAO-type proposal and voting system.
In the last 24 hours, Cardano’s trading volume surged by 12.5%, indicating growing investor interest. Many believe that this new chain development will drive ADA’s price higher.
Cardano’s price analysis suggests a potential breakout is on the horizon, just before the anticipated hard fork. This pre-fork price movement reflects the crypto community’s enthusiasm for Cardano’s ongoing progress and its potential for future growth.
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