Cardano [ADA] has been on an impressive rally, surging more than 22% over the week. The 8th-largest coin started trading in a sideways range following conflicting market momentum as Bitcoin and altcoins sustained downside move. However, after undergoing a rebound, ADA/USD pair restarted a fresh uptrend which aided in breach of several crucial resistances along the way. This strong surge opened the doors for more upsides for the coin in the coming days.
Over the past 24-hours, ADA was up by 11.49% which drove its price to $0.230. At the time of writing, the crypto-asset registered a market cap of $7.11 billion and a 24-hour trading volume of $3.27 billion.
Cardano [ADA] Daily Chart:
Cardano [ADA] formed a bearish ascending channel pattern on the daily chart. As per convention, an ascending channel concludes with a bearish breakout, and hence a minor correction was predicted. However, ADA defied this trend, underwent a reversal, and broke above.
The moving averages continued to form crucial support for the coin. Furthermore, the rising gauge between the 50 DMA [Pink] and the 200 DMA [Blue] exhibited a bullish outlook for Cardano.
Despite the positive turnaround, will ADA bulls be able to sustain higher levels?
Following the latest price movement to the positive side, the Bollinger Bands diverged which depicted a period of high volatility in the coin market. The MACD generated a very strong buy signal as it formed a bullish crossover above zero. This trend into the bullish territory was further indicative that Cardano was primed for more gains in the near-term.
The RSI was also heading towards the overbought zone. This essentially signaled a high buying pressure among the investors in the ADA market and there was still time for a peak to materialize.
The above charts noted that Cardano could potentially breach more upside levels before the volatility fades. In which case, the target points for the coin stood at $0.277, $0.309, and $357 respectively.
However, if the bears battle it out for supremacy, ADA could fall close to the levels well supported by the 50 DMA at $0.158 and the 200 DMA at $0.121.