Can the price of Cardano reach $0.30 as the eye breaks out of the bullish limit?
The price of Cardano rose about 12% last week before settling at around $0.25 on Tuesday. It is now close to confirming a bullish reversal pattern on the charts which may put you in an upward position in the coming sessions.
Summary
- Cardano’s price rose 12% last week to $0.266 before falling to $0.25 as profit-taking began.
- Progress in the development of Protocol 11 and the growing institutional use of the Midnight sidechain are increasing the sentiment.
- A possible wedge break could push ADA to $0.30, while the potential risk sits at $0.23 if major volatility intensifies.
According to data from crypto.news, the price of Cardano (ADA) rose 12% last week to $0.266 on Friday before settling at $0.25 on Tuesday as investors booked profits.
The token may continue to see a lot in the future due to three main factors that have strengthened investor sentiment recently.
First, Cardano developers have recently made significant progress towards the Van Rossum hardfork, also known as Protocol 11 development. The development will improve the Plutus smart contract environment and allow dApps on Cardano to efficiently use and handle high transaction volumes on the network.
Second, Cardano’s Midnight sidechain mainnet has been experiencing institutional expansion since its launch in late March. Regulated institutions such as Monument Bank have already started using Midnight to make £250 million in real deposits. Additionally, more than 200 German companies were recently revealed to be using Cardano as a security and identity layer for AI microtransactions.
Third, institutional and whale owners have shown strong accumulation of Cardano in the past month. Such large accumulations often arouse the interest of retail investors who follow the lead of major market participants as an indicator of long-term value.
On the daily chart, the price of Cardano is close to the exit of the wedge pattern formed by two descending and converging lines. A breakout from the upside of the pattern usually leads to a positive recovery in the stock’s price action in subsequent sessions.
The daily RSI is sitting at the neutral threshold of 49 while the MACD lines are trading below the signal line. Both of these indicators suggest that the stock may need a short period of consolidation before its next leg up.
Currently, Cardano’s immediate resistance is $0.26. A break above this level would provide the impetus needed to regain the $0.30 psychological barrier.
On the contrary, if the US-Iran war worsens in the coming days, the token can return to its low point at $0.23 as investors flee to safe assets.
Disclosure: This article does not represent investment advice. The content and materials presented on this page are for educational purposes only.
