Cardano targets $0.70 after bullish breakout

Cardano appears to be gaining bullish momentum after overcoming a significant supply wall. Technical indicators suggest that as long as ADA continues to trade above $0.50, it may have the potential to go higher.

Cardano is getting bullish

Cardano has broken a critical area of ​​resistance, potentially signaling the beginning of a new uptrend.

ADA has seen its price rise nearly 23% in the past three days after enduring a three-month consolidation period. The sudden rally was triggered shortly after Cardano broke through the $0.45 resistance level. Further buying pressure could push ADA towards higher highs as the key supply barrier appears to have been breached.

Cardano appears to have broken out of the descending triangle on the 12-hour chart. This technical formation expects ADA to rise as much as 51% after overcoming the $0.45 resistance level. If validated, the formation indicates an upside target of $0.70.

However, Cardano needs to stay above the $0.50 support level to have a chance to print higher highs. Failure to hold above such a crucial price point can be perceived as a sign of weakness, leading to an increase in profit taking. If this were to happen, ADA could fall to $0.45 or even go as low as $0.38.

The upward price action seen recently coincides with the rally Ethereum has experienced in recent days after weeks of sluggish price action. Other Layer 1 networks such as Solana, Avalanche, Fantom and NEAR have also increased in market capitalization as the crypto market begins to show signs of life. It remains to be seen whether the overall macroeconomic weakness that has weighed on asset risk in recent months will continue to affect the crypto market going forward.

Disclosure: At the time of writing, the author of this piece owned BTC and ETH.