Cardano (ADA) breaks out - will it return to the $2 level?

Cardano

(ADA) has been moving upwards since July 20 and managed to break the falling resistance line on August 10. Sponsored

Although the uptrend remains intact and with no sign of weakness, ADA needs to start closing candles above the $1.75-1.83 area for the trend to remain bullish.

Cardano Cardano

breakout

has been

moving upward since July 20 after reaching a local low at $1.02

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Initially, the price stopped after reaching the resistance area at $1.45 on August 9. This level also coincides with a descending resistance line.

However, ADA managed to break out on August 10 and formed a large bullish candle. It triggered a breakout from the aforementioned falling resistance line. So far, it has reached a close at $1.77 on August 10.

The technical indicators on the daily interval are bullish. MACD is positive, RSI has crossed 70 and the stochastic oscillator

is rising.

The nearest resistance area is located at the level of $1.83.

Cardano (ADA) breaks out - will it return to the $2 level?ADA na interwale dziennymADA chart courtesy of Tradingview

Future movement

The 6-hour chart further supports the outlook from the daily chart. The resistance level at the 0.5 Fib retracement for measuring the entire downward move is at $1.75 (white).

If the entire move is an A-B-C structure (black), the A:C waves would likely form at a ratio of 1:1.61. This could lead to a peak at $1.81. However, this structure is not yet confirmed.

As with the daily interval, the technical indicators show no signs of weakness, even if the RSI is overbought.

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If there is a rejection from this resistance area, the $1.47 level could probably act as support.

Cardano (ADA) breaks out - will it return to the $2 level?Wykres ADA na interwale 6-godzinnym ADA chart courtesy of Tradingview

ADA/BTC

Cryptocurrency <a href=”https://beincrypto.pl/learn/najlepsi-krypto-traderzy-do-obserwacji-w-2021-roku/” target=”_blan

k” rel=”noopener”>trader @CryptoMichNL outlined the ADA/BTC chart, stating that it needs to regain the resistance area at 3600 satoshi before it really starts to accelerate. Cardano (ADA) breaks out - will it return to the $2 level?Cardano (ADA) breaks out - will it return to the $2 level?Source: Twitter

Unlike ADA/USD, it seems that the pair to BTC is still following a falling resistance line. This line is currently near 4000 satoshi, converging with the 0.5 Fib retracement resistance level.

The technical indicators in the daily interval are decidedly bullish. The stochastic oscillator has formed a bullish cross, the RSI has moved above 50 and the MACD has almost crossed into positive territory.

However, until both horizontal and diagonal resistance levels can be broken, the trend cannot be considered bullish.

Cardano (ADA) breaks out - will it return to the $2 level?Wykres Cardano do BitcoinADA/BTC chart courtesy of Tradingview

For the latest analysis of Bitcoin (BTC) by BeInCrypto, click here.

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