NOIDA (CoinChapter.com) — Cardano (ADA) price outpaced its peers on Feb. 8 to reclaim $0.5, with ADA prices likely reacting to the wider market price movement.
As Bitcoin’s price broke above $45,000 for the first time in nearly a month, buyers started entering the market. Since altcoins often mirror Bitcoin’s price action, the rest of the market turned bullish, too.
The blockchain has an update lined up, the CIP-169, which would introduce a minimal viable on-chain governance mode on Cardano. Developers claim the upgrade would be a major leap towards making the blockchain a “fully self-governed ecosystem.“
Furthermore, transaction volumes and wallet addresses on the Cardano blockchain is growing, suggesting that interest in the blockchain might be increasing.
Apart from such updates, ADA has no clear bullish cues buoying its rally, suggesting that the reason why Cardano’s price is up today might be wider market conditions.
ADA Price Forms Bullish Pattern
Meanwhile, ADA price has formed a bullish technical pattern called the ‘Bull Pennant,’ giving the Cardano token another reason to rally on Feb. 8.
The bull pennant is a continuation pattern that emerges when an investment instrument consolidates between two converging trendlines after undergoing a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
However, it is important to note the volume. As in, volume during consolidation should be low while it must increase during the breakout move. Otherwise, prices are more likely to pull back into the consolidation pattern.
If ADA price breaks out of the bull pennant, it can theoretically target a price level at least 154% higher than its current prices, meaning a price target of $1.345.
Cardano Price Crosses $0.53 For The First Time In Feb
ADA price’s recent rally forced the Cardano token above the $0.53 price level, breaking above the 20-day EMA (red wave) and 50-day EMA (purple wave) resistance confluence. If the bull run continues, ADA price would likely rally to the resistance near $0.59.
Breaking above the immediate resistance could strengthen ADA’s bullish rally, propelling the Cardano token’s price to the resistance near $0.65 before corrections pare gains.
On the other hand, if bears start booking profits after the recent price rally, ADA price could drop to the 100-day EMA (blue wave) support near $0.48. Failure of the immediate support would push bulls to defend the support near $0.393.
The RSI for ADA remained neutral, with a score of 55.41 on the daily charts.
