Key Takeaways:
- Public blockchain platform Cardano traded at $2.28 in the New York session Tuesday.
- It could gain another 33% after breaking out of the Descending Triangle formation.
- Experts agree that Cardano price could rise in the upcoming sessions.
- ADA/BTC pair looked promising, flashing an RSI divergence.
YEREVAN (CoinChapter.com) – Smart contract platform Cardano broke out of the Descending Triangle it traded in since August and gained 8% in the previous 24 hours. Additionally, several technicals hint at a 33% bullish continuation for ADA, pinpointing the target price at $3.04.
In detail, the mentioned Descending Triangle is a continuation pattern that consists of two converging trendlines. The support line is horizontal, while the resistance features a descending slope. As the price action preceding the Triangle was bullish, a bias continuation is likely to follow.
Also read: Cardano bull pennant eyes 70% ADA price breakout
Moreover, the expected uptrend could be equal to the ‘mouth’ of the Triangle, meaning the highest distance between the trendlines.
Several crypto analysts saw an upcoming surge as well and tweeted their ADA price prediction.
Expert opinions on ADA
One of the analysts was Michael Van de Poppe, the chief executive of Eight Global, a consultancy and educational platform. He noted the $2.0 support as a significant market entry point.
He also pointed out other support and resistance levels on the chart, expecting a possible setback before a new leg up.
Also read: Cardano risks facing massive declines even as ADA rebounds 5%
Scott Melker, a crypto analyst and a Youtuber with a vast following, focused on ADA/BTC pair, spotting a bullish RSI divergence. Thus, the analyst added he was not surprised at the current uptrend.
In detail, the RSI (relative strength index) is a momentum indicator, typically displayed as a graph at the bottom of the chart (purple on the ADA/BTC chart below).
The RSI reflects the traders’ perception of a given asset. However, if the RSI displays higher lows, while the price action shows lower lows, the asset’s value is likely to increase. The dissonance is dubbed the ‘bullish RSI divergence,’ shown with blue arrows on the chart below.
Also read: Litecoin gains weight as LTC rallies over 16% in past 24 hours — What’s next?
According to the analysts’ bullish stance and the prediction based on the Descending Triangle, ADA could see an uptrend in the sessions ahead. The possible target stood at $3.04, 33% higher than the current value. ADA/USD pair traded at 2.28 in the New York session Tuesday.
