Cardano Looks To Have Broken Out Of A Pattern: Now What?
Cardano (CRYPTO:ADA) is a proof-of-stake blockchain platform. It's the first to be founded on peer-reviewed research and developed through evidence-based methods. Cardano was also founded by Charles Hoskinson, a co-founder of Ethereum (CRYPTO:ETH).
Cardano was down 4.6% at $1.69 at last check. Below is a technical analysis of the chart.
Cardano Daily Chart Analysis
- Cardano looks to have broken out of what technical traders may call an ascending triangle pattern.
- The crypto is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment is most likely bullish.
- Both of these moving averages may hold as an area of support.
Key Levels To Watch
- The ascending triangle pattern is a bullish continuation pattern that happens when higher lows are squeezed between a flat top resistance. Cardano looks like it broke out of the pattern and could be heading higher.
- Previously the $1.50 level held as resistance before the cryptocurrency was able to break above the level.
- Now the $1.50 level may hold as an area of support. Another area the crypto may find support is along the trendline that is formed by the higher lows. To best visualize the trendline, drawing a line on the chart that connects the lows together will show the potential area of support.
What’s Next For Cardano?
Bullish technical traders would like to see Cardano continue its run upwards. As long as higher lows are able to be formed bulls should stay in control.
Bearish technical traders would like to see Cardano fall back below the $1.50 level. A push below the lower high trendline could indicate that the trend is changing to bearish.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.