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Cardano (ADA) Is Ready for a 43% Upswing.

March 30, 2021

Talking Points:

● ADA starts consolidating in an ascending triangle pattern.

● A solid close above 1.18 USD suggests a 20% upswing is on the cards.

● If ADA bulls are unable to hold the demand barrier at 1 USD, a 35% correction could happen.

ADA is consolidating in a bullish pattern suggesting a 43% bull run if a key supply obstacle is overcome.

ADA Is at a Vital Level.

On the 12-hour chart, ADA has created three higher lows and two equal highs since the 22nd of February. An ascending triangle pattern has appeared as the trend lines are connecting the swing highs and lows.

This technical pattern suggests a 43% bull run to 2.09 USD, this is calculated by measuring the distance between the swing high and swing low at the widest part of the pattern. However, this will only be confirmed if ADA is able to close over a 12-hour candlestick above the breakout point at 1.46 USD, the triangle’s base.

Supporting this bullish sentiment is the latest surge above the 78.6% Fibonacci retracement level at 1.18 USD, which turned the 50-day Simple Moving Average (SMA) into a support level. If the bulls are able to maintain the momentum it could result in a higher high of around 1.46 USD or even surpass it.

If a successful close over the triangle’s baseline, then ADA could confirm the breakout of the bullish pattern and eye up a bull run towards 2.09 USD, which is close to the 141.4% Fibonacci extension level.

ADA/USDT 12-Hour Chart:

ADA must remain over the triangle’s hypotenuse around the 1 USD mark to maintain a bullish outlook. However, an increase in selling pressure resulting in a significant-close below this level might flip the 100-day SMA into resistance and result in a bearish movement.

If this was to occur, then ADA may slip by 13% towards the 61.8% Fibonacci retracement level at 0.95 USD. If this bearish momentum continued, ADA could fall by up to 35% towards the 200-day SMA close to 0.70 USD.

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