Cardano (ADA) is on the verge of making a significant price gain by breaking out of a symmetrical triangle formation. This suggests that the cryptocurrency is exhibiting a positive macro outlook and increasing its recovery potential. However, ADA’s rally will require support not only from investors but also from broader market conditions.
Cardano’s Average Coin Age (MCA) is rising again, indicating increasing optimism and confidence among investors. The increase in MCA indicates that investors are choosing to hold their ADA rather than sell it. This strengthens Cardano’s resilience and long-term growth potential. When investors are not selling, the market becomes more stable, creating a favorable environment for ADA to move upwards.
Cardano’s Relative Strength Index (RSI) is showing a gradual recovery, reflecting increasing buying interest. However, the RSI is yet to turn the neutral 50.0 level into support. This level would be a significant indicator of strong bullish momentum. Before that happens, it may be difficult for ADA to show sustained growth. If the RSI breaks above 50.0, it would create a strong foundation for ADA’s price to rally.
Cardano’s Upside Potential: Targeting $1.74
Cardano’s price is currently trading inside a symmetrical triangle. This technical formation suggests that it offers the potential for a 64% price increase once it breaks out. If ADA can break out, it could target $1.74. However, it will need to maintain strong support at $1.10. ADA will approach the next resistance level by breaking out of $1.32, which will be a significant milestone for the rally.
If ADA fails to break out of the symmetrical triangle formation and fails to break above $1.10, it could remain near $0.94. If this support level is lost, ADA’s uptrend could be invalidated and it could drop to $0.86. This scenario could raise concerns among investors and cause the price to fall further.
In conclusion, while Cardano’s recovery potential is strong, the RSI needs to break above 50.0 and technical formations need to be confirmed. The most important steps ahead for ADA will be maintaining the $1.10 support and breaking the $1.32 level.