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
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
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.
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
The post 3 Reasons Why Cardano Price May Witness Massive Rally in 2023 appeared first on CoinGape.
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