Cardano has broken out of a symmetrical triangle pattern on its hourly chart, signaling a potential continuation of its bullish momentum. After consolidating within the triangle formation for several weeks, price has surged beyond the upper trendline and is now testing key Fibonacci retracement levels.
The cryptocurrency recently pulled back from its peak at around 0.7490, currently trading at 0.7073. This retracement appears to be testing the 38.2% Fibonacci level at 0.6984, which is providing immediate support to the price action.
Key Cardano Levels To Watch
The Fibonacci retracement tool applied to the recent upward movement shows several critical levels that traders should monitor. The 38.2% Fib level at 0.6984 is currently being tested, while the 50% retracement level at 0.6828 represents a stronger support zone should the price continue to correct. Below that, the 61.8% Fibonacci level at 0.6672 could serve as the final line of defense for bulls before a potential trend reversal.
On the upside, the recent high of 0.7490 represents immediate resistance. A sustained break above this level could signal continuation of the uptrend with potential targets extending beyond the 0.75 mark.
The price is also interacting with a previous resistance zone around 0.65, which now appears to be acting as support, reinforcing the bullish bias. The 100% Fibonacci extension level at 0.6166 could provide additional support in case of a deeper correction.
Analysis: ADAUSD Technical Indicators
The moving averages present a bullish configuration, with the 100 SMA (blue line) positioned above the 200 SMA (red line), confirming that the path of least resistance is to the upside. The price is trading above both moving averages, which further strengthens the bullish outlook.
These moving averages may act as dynamic support levels during pullbacks, particularly the 100 SMA which appears to be curving upward, reflecting increasing bullish momentum.
The stochastic oscillator is moving near the overbought territory, suggesting that buying pressure remains strong but could be approaching exhaustion. A potential downturn in this indicator might signal a temporary pause in the uptrend or a deeper correction.
The MACD indicator (visible in the middle panel of the chart) shows positive momentum with green histogram bars and both lines positioned above the zero line. This configuration supports the bullish trend continuation scenario, though the convergence of the lines may indicate slowing momentum in the near term.
Cardano Price Overview
The overall technical structure suggests that Cardano remains in a bullish trend, despite the current pullback. The retracement to the 38.2% Fibonacci level appears to be a healthy correction within the context of a broader uptrend, potentially providing an entry opportunity for bulls who missed the initial breakout.
If the 38.2% Fibonacci support at 0.6984 holds, we could see Cardano resume its upward trajectory toward retesting the recent high at 0.7490, with potential for establishing new highs above the 0.75 level in the coming weeks.
However, traders should remain cautious of a break below the 50% Fibonacci level at 0.6828, as this could trigger a deeper correction toward the 61.8% level at 0.6672 or potentially the 100% extension at 0.6166, especially if accompanied by increasing volume and bearish divergence on the oscillators.
From a broader perspective, Cardano’s successful breakout from the symmetrical triangle pattern suggests potential for sustained upward momentum, particularly if market sentiment remains positive and the crypto market as a whole continues its recent strength.
