3 Reasons Why Cardano Price May Witness Massive Rally in 2023

The Cardano coin price has showcased a parabolic growth since Mid March and registered around 48% growth to reach the current price of $0.444. During this recovery, the buyers breached several resistances and gradually gained the lost grounds to initiate a new recovery rally. Moreover, the rising ADA price has pierced the crucial resistance of $0.427 for the first time in six months, offering an entry opportunity for interested traders.

Bullish Pattern Sets Cardano Price for Massive Bull Run

Source- Tradingview

In the weekly time frame chart, the Cardano price shows a bullish breakout from the $0.427-$0.42 neckline of an inverted head and shoulder pattern. This chart setup is often spotted at the market bottom indicating a potential signal for trend reversal.

Yesterday, the coin price retested the breached resistance of $0.427 and showed its suitability above the reclaimed level. As of now, the ADA price trades at $0.444 with an intraday gain of 2.37%. 

In ideal bullish conditions, the head and shoulder pattern offers a potential target of the same distance between the head peak and neckline measured from the breakout point. Thus, with sustained, the buyers may lead the prices 35% up to hit the $0.6 mark.

Dow Theory Hints at the Early Sign of a Bullish Trend Reversal

Source- Tradingview

Dow Theory suggests that an asset trend will continue to persist until there is a clear signal of a trend reversal. In Cardano price analysis, the formation of an inverted head and shoulder could be that signal.

Under the influence of this pattern, the coin price has recently formed a higher low at $0.3 and the aforementioned breakout of $0.427 high will bolster the formation of a new higher high. This structure of new higher and higher lows is a sign of an established uptrend.

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Daily EMA Reflects a Bullish Mood Among Traders.

Source- Tradingview

Amid the recent recovery rally, the Cardano price reclaimed the crucial daily EMAs(20, 50, 100, and 200).

Out of them, the 100 and 200 EMAs are trend-defining signals giving additional confirmation for a potential uptrend. Moreover, the 20 and 50 EMAs can act as dynamic support to bolster ongoing rallies and can assist buyers during occasional pullbacks.

Cardano Coin Intraday Price Levels.

• Spot price: $0.44
• Trend- Bullish
• Volatility- Low
• Resistance Levels: $0.489 and $0.526
• Support Levels: $0.42 and $0.4

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