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Cardano’s price action has shown signs of recovery after a recent dip, with the cryptocurrency bouncing from its lower support level. Over the past 24 hours, Cardano has gained close to 1%, reaching an intraday high of $0.7613. This small but notable rebound has drawn the attention of technical analysts, and an interesting analysis shows that the asset has been trading within a well-defined chart pattern for several months.
Particularly, technical analysis of the Cardano/USDT daily timeframe chart shows that the cryptocurrency is trading within a triangle and could now be gearing up for a rally to $1.5.
Triangle Formation Says Cardano Could Be Set For 100% Move
A recent analysis on TradingView highlighted that Cardano has been trading within a triangle pattern on the daily timeframe since November 2024. The pattern is highlighted by a series of lower highs and higher lows, shaping a formation of converging lower and upper trendlines. The latest price decline saw Cardano drop from a high of $1.1747 before finding support at the lower boundary of the triangle at $0.647.
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Going by the trend of its performance within the triangle within the past six months, the next move after this support is another rally towards the upper trendline. The recent push in the past 24 hours seems to reinforce the formation, as it potentially marks the start of a push toward the upper resistance level.
The key takeaway from this triangle formation is the potential for an explosive move once Cardano retests the upper trendline of this triangle again. According to the analyst, if Cardano’s price breaks above the upper trendline, it could cause a surge toward $1.5, representing a 100% rally from the current price level.
Can ADA Hit $1.5? Resistance And Breakout Zone To Watch
The triangle’s upper trendline is currently the most critical resistance level for Cardano’s price. Cardano has tested this resistance about three times since November, making any upcoming approach a pivotal moment for its price trajectory. If buyers gain enough momentum and push the price past this barrier, a rapid breakout could follow, potentially sending the asset toward the projected $1.5 target. However, another rejection is still possible here, especially considering the market has transitioned into a bearish sentiment in the past few days.
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Market sentiment will significantly influence whether Cardano achieves the projected price target. The crypto market’s overall trend, especially Bitcoin’s movement, will affect how quickly Cardano can reach this level. Particularly, the rate at which Cardano approaches that upper trendline will determine if there’s enough power to break above the upper trendline.
At the time of writing, Cardano is trading at $0.7205, and there’s even a possibility of retesting the support trendline again in the next few hours.
Featured image from iStock, chart from Tradingview.com
