Cardano (ADA) price is eyeing a potential rally to a new all-time high at $4.50 due to the completion of a key market pattern known as ascending parallel channel. A successful breakout from this setup suggests the possibility of a sixfold gain for ADA from current prices. This technical formation mirrors the channel setup that occurred in 2021, just before ADA soared 2,800% to $3.10.
At press time, Cardano trades at $0.766 after an 8.10% rally last week.
Cardano Price Eyes 6X Rally to a New ATH
Cardano’s price appears poised for a significant rally to $4.50, as indicated by a weekly chart that shows ADA trading within an ascending parallel pattern. This pattern often precedes upward breakouts, and currently suggests the price of Cardano could 6X in the coming weeks.
A successful push past the upper trendline of the parallel channel neckline, around $0.7600, could spark a rally that would potentially pump the altcoin past the $1 psychological mark and bring it closer to the all-time high at $3.10.
The ascending parallel pattern is a bullish continuation pattern formed when the price is contained within two upward-sloping, parallel trendlines. This pattern typically indicates higher highs and higher lows, signaling the direction of the trend.
The price has already closed past the upper trendline of the parallel channel, and the target of $4.50 was calculated by adding the height of the parallel channel to the breakout point.
Moreover, Cardano’s Relative Strength Index lies at 51.49, suggesting the current price action is bullish.
Similar Bull Fractal Led to 2,800% Gains in 2021
According to historical data, Cardano’s 2021 rally to a new all-time high followed an ascending parallel channel pattern. According to TradingView, the price consolidated between $0.10 and $0.20, which was then followed by a massive 2,800% spike to $3.10.
Key Levels to Watch in Case of Breakout
Cardano’s price has massive potential for a breakout rally after breaching the $0.75 resistance level. The next stop could be the $1 psychological mark, above which traders should watch out for three primary targets: $2.07, $3.10, and a new ATH around $4.50.
If buying pressure fades, Cardano’s price could fall below $0.3977 and lose the support level, which would further invalidate the bullish outlook.
Final Take
Cardano price forecast suggests Cardano is heading for a historic breakout, as signaled by the ascending parallel channel pattern, a previous market fractal that led to the 2021 rally and the formation of higher lows, which suggest sustained demand.
For a detailed, long-term Cardano Price Prediction 2025-2030: Read this
Frequently Asked Questions (FAQs)
Cardano’s ascending parallel channel pattern is a bullish continuation pattern that signals the start of an upside move. The pattern is characterized by an upward-slopping channel of higher highs and higher lows.
Cardano’s all-time high is $3.10.
The current technical setup suggests Cardano could rally 6X up and reach a new all-time high at $4.50.
William
William is a markets and business journalist at CoinGape, where he covers developments across the digital asset space. He has contributed to leading media outlets such as the Times of Malta and previously reported on business news as an assistant reporter for TVM.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/heres-how-cardano-price-may-6x-from-this-critical-level/
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