This Bullish Setup Hints Cardano Price Poised For 10% Jump this Week

ADA Price Prediction: The Cardano coin price is witnessing a sustained recovery since late March and has taken a slight detour as the market sentiment fails to support a bullish rally. The resulting consolidation resembles a small symmetrical triangle formed by two converging trend lines that meet at a point. Thus, interested traders must wait for a price breakout to confirm the potential trend of the future.

Key Points: 

• The pennant indicates that traders and investors are taking a brief pause to consolidate their gains, causing the price to move sideways for a short period.
• A potential bullish breakout from the resistance trendline will release the trapped bullish momentum in the ADA price 
• The intraday trading volume in the ADA coin is $167 Million, indicating a 6% gain

 Source- Tradingview

Cardano Price Coiling Up Before A Significant Upswing                                                                     

In the four-hour time frame chart, the Cardano coin price shows the formation of a bullish pennant pattern. Under the influence of this pattern, the price has been resonating between two converging trendlines for nearly two weeks, suggesting the traders are respecting this technical setup.

As of now, the ADA price trades at the $0.386 mark and has turned down from the pattern’s resistance trendline. This reversal is a sign that this consolidation phase may prolong for a few more trading sessions and plunge the price to a lower trendline.

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Anyhow, in response to the bullish pattern, the buyers are likely to breach the overhead trendline which will signal the resumption of prior recovery. Thus, a potential breakout with the 4-hour candle closing will offer an entry opportunity that may push the prices 10% up to hit the $0.42 monthly barrier.

Conversely, a breakdown below the trendline will offset the pattern’s bullish thesis and may trigger a long correction. 

Technical Indicator

Moving Average Convergence/Divergence: The MACD(Blue) and signal(orange) line wavering around the midline indicates neutral sentiment among the market sentiment.

EMAs: In the 4-hour time frame chart, the 50 and 100 EMA slopes are offering strong support to encourage the coin buyers to surge higher.

Cardano Coin Price Intraday Levels

• Spot price: $0.386
• Trend: Bearish
• Volatility: High
• Resistance level- $0.42 and $0.52
• Support level- $0.38-0.377 and $0.34