Cardano’s breaker block pattern signals a potential major price rally.
ADA’s bullish momentum is supported by a strong technical pattern and stoch RSI crossover.
Historical patterns suggest Cardano may follow Bitcoin’s previous bullish breakout.
Cardano (ADA) is displaying impressive bullish signals on the monthly time frame, thanks to a significant technical pattern known as the breaker block. This chart pattern suggests that ADA may be on the verge of a major price rally.
Why Cardano’s Bullish Momentum Could be Unstoppable
Firstly, Cardano has formed a breaker block pattern, which is considered one of the most bullish formations in technical analysis. Unlike other patterns like the double bottom or higher low formations, the breaker block pattern is notable for its ability to sweep liquidity below previous lows.
This setup often signifies a strong bullish reversal. For ADA, this pattern indicates that the current bullish phase is poised to continue, potentially leading to substantial gains.
$ADA is still looking very bullish on the monthly time frame!!! Read why below:1. #Cardano has formed one of the most bullish chart patterns in technical analysis called a breaker block pattern. It is more bullish than other double bottoms forming equal lows (W) or higher low… pic.twitter.com/p1a2EXpD0N
— Matthew Lake (@Matthew_Lake182) July 20, 2024
In addition to the breaker block pattern, the stoch RSI (Relative Strength Index) is nearing a critical crossover on the monthly chart. This indicator is showing levels lower than those observed in the previous cycle when Cardano backtested the breaker block.
Such a crossover typically signifies that ADA is primed for a significant upward movement. The historical performance of this indicator supports the notion that ADA is set for a bullish breakout.
Bitcoin’s recent performance offers further context for Cardano’s current setup. On March 6, 2023, Bitcoin exhibited a similar technical pattern on its weekly time frame, characterized by a liquidity sweep followed by a significant price surge.
Bitcoin’s rally was preceded by a backtest of the breaker block, and after nearly two months of consolidation, it soared to an all-time high. This historical precedent strengthens the case for ADA, suggesting that a comparable rally could be imminent.
Given the current chart setup and historical parallels, Cardano will likely experience substantial price growth. The confluence of the breaker block pattern, favorable stoch RSI readings, and Bitcoin’s historical performance collectively reinforce ADA’s bullish outlook.
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