Cardano Price Gains 8.46% and Aims for $0.42 as Bullish Momentum Gains Strength
Altcoins are experiencing a resurgence following a rebound in the broader cryptocurrency market, which has reached a valuation of $2.1 trillion. While Cardano has not garnered significant attention among the top performers, it is showing indications of a reversal in trend on the daily chart.
After a prolonged period of forming lower-high patterns, the 11th largest cryptocurrency by market capitalization is suggesting a potential uptrend. The question remains whether the upward trend in Cardano’s price will continue or if it will encounter limitations from multiple overhead resistances.
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Cardano’s Breakout from a Descending Channel
Following a rapid end to its downtrend after a three-day decline from September 14-16, Cardano is demonstrating a bullish resurgence. The altcoin has climbed 8.46% over the past four days and is currently trading at $0.359, with a 2.28% intraday gain from the opening price of $0.352.
The recovery in Cardano’s price indicates a possible breakthrough above several resistances on the daily chart. Notably, the price has exceeded the 50-day Simple Moving Average (SMA) and a longstanding overhead resistance trendline.
The breakout from the trendline signifies a departure from a descending channel in the daily chart and is accompanied by a series of four consecutive bullish candles. Presently, the Cardano price is moving towards the next dynamic resistance of the 100-day SMA at $0.373.
Future Trajectory of Cardano
The current recovery is positively influencing the Moving Average Convergence Divergence (MACD) and signal line, with an increase in positive histograms. Additionally, the momentum indicator is avoiding a negative crossover, indicating a short-term opportunity for purchasing.
In a related development, during the Token 2049 event in Singapore, Cardano founder Charles Hoskinson humorously urged Gemini Exchange to list ADA, displaying a placard that read “When ADA?” This lighthearted gesture has reignited interest in Cardano and could potentially increase the likelihood of ADA being listed on Gemini, thereby boosting its price in the near future.
Fibonacci Levels
Based on the Fibonacci levels, the next significant resistance is at the 23.60% level, around $0.422, followed by the 200-day Exponential Moving Average (EMA) at $0.45. Consequently, achieving the psychological milestone of $0.50 in one go appears improbable, as Cardano may face several challenges along the way.
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