Cardano is trapped in a consolidation phase for almost two weeks due to a lack of interest in the market. In the middle of that, it formed a bullish pennant and looks set for more gains in the future.
Two weeks ago, ADA encountered a solid resistance at $0.68 after increasing by almost 170% in two months. The price dropped off that resistance and remained indecisive ever since.
While taking a brief break in buying, the price has remained stalled around the $0.61 level over the past few hours. Although a fresh rally seems to be building up with the pennant flag pattern on the daily chart. More bullish action is lurking around the corner.
This same pattern saw ADA through a massive gain last month after successfully flipping through the $0.40 resistance to mark a new one recently. From the look of things, this bullish pattern is most likely to be repeated any moment from now.
However, due to market uncertainties and speculations, the price may go south. That would likely happen if the overall crypto market clamps down. But looking at the current price actions, ADA’s bullish trajectory remains intact on the daily chart.
ADA’s Key Levels to Watch
A classical pennant flag break should see the price increase fast to the $0.647 and $0.68 resistance levels before surging to $0.73 and potentially $0.75 in the future.
In case of a dip, the closest support levels to watch on the daily chart lie at $0.58, $0.54 and $0.51 respectively. The next support level to consider for a deep retracement is $0.46, followed by the $0.40 level.
Key Resistance Levels: $0.647, $0.68, $0.73
Key Support Levels: $0.58, $0.54, $0.51
- Spot Price: $0.614
- Trend: Bullish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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