Will a triangle breakout rally in Cardano result in a price rally crossing the $1.50 barrier before the year ends?
As Bitcoin BTC $106 619 24h volatility: 2.5% Market cap: $2.11 T Vol. 24h: $102.86 B price nears the $108,000 mark, the altcoin segment is witnessing a surge in buying pressure. The total crypto market cap, excluding Bitcoin and Ethereum ETH $3 989 24h volatility: 1.8% Market cap: $481.18 B Vol. 24h: $44.82 B , has witnessed a surge of 1.73% over the past 24 hours and stands at $1.08 trillion.
Amid the improving conditions of the altcoin, Cardano ADA $1.10 24h volatility: 3.7% Market cap: $39.36 B Vol. 24h: $1.79 B is standing at a crossroads with increasing bullring chances. Will Cardano create a new 52-week high before 2024 ends?
In the two-hour price chart, the Cardano price trend showcases a long-coming resistance trendline. Cardano price has found crucial support at nearly $1.054.
This crucial support zone coincides with the 38.20% Fibonacci level. Currently, the ADA price trend within the triangle pattern reflects the possibility of a double-bottom reversal.
Furthermore, the sideways trend within the triangle pattern forms a consolidation range. The 38.20% and 50% Fibonacci levels at $1.054 and $1.101 act as the two boundary levels. Hence, the triangle breakout will also mark Cardano outgrowing the range.
The reversal rally is challenging the overhead resistance trendline, hinting at a bullish breakout. Supporting the recovery run, the two-hour RSI line showcases a bullish divergence within the triangle pattern.
Since November, the number of large transactions over the network has tripled from 3.32k transactions to the current 10.2k transactions. However, amid the recent pullback, the transactions have dropped from the peak of 21.97k, reflecting a network slowdown.
Furthermore, the volume of these last transactions dropped from its 30-day high of 49.99 billion ADA tokens to 216.25 billion ADA tokens on December 16. This reflects a significant decline in the transaction volume, reflecting a weakness in network health.
Despite the increased volatility over the network transactions, the daily active addresses are witnessing an uptick. As the number of active addresses nears the 50,000 milestone, these marks come back from the recent low of 5.51k transactions.
This reflects the possibility of the Cardano user base making a comeback amid broader market recovery.
As Bitcoin prepares to reach the $110,000 milestone, the minor pullback in Cardano is on the verge of a conclusion. With a surge in bullish progress, the descending triangle breakout will likely result in a new 52-week high in Cardano prices.
Along with the resistance trendline, the recovery run in Cardano challenges the 50% Fibonacci level. Further, in case of a strong closing above the resistance trendline, the Cardano price is expected to reach the previous peak of $1.327.
Based on the Fibonacci levels, the extended rally could reach $1.46 or $1.67 based on the 1.272 and 1.618 Fibonacci levels. Hence, the technical analysis and the Cardano network recovery hint at the ADA token price potentially reaching $1.67 before the end of December.
On the flip side, the crucial support levels for Cardano are $1 and $0.94.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Altcoin News, Cryptocurrency News, News
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
