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Why is Cardano (ADA) Price Up? Sponge V2 May Soon Steal the Spotlight

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Cardano’s native token, ADA, has been on an upward trajectory since mid-October, rising from around $0.24 to the current level of approximately $0.64. In just the last 24 hours, ADA has surged nearly 7%.

Technically, ADA appears to be trading in an Ascending Triangle pattern on its chart. In this bullish continuation pattern, $0.65 is acting as resistance. Traders are watching to see if ADA can break above this level, which would signal a continuation of the uptrend with potential to reach $0.75 next.

An Ascending Triangle is a continuation pattern where the price moves between an ascending resistance line and a horizontal support line. Most traders wait for a definitive breakout above resistance before entering a long position. However, swing traders could trade between the trendlines, buying at support and selling at resistance, as long as the lines remain far enough apart.

Source: altFINS

In terms of momentum indicators, the picture is mixed for ADA currently. The Moving Average Convergence Divergence (MACD) line sits below the signal line, which is considered bearish. However, the Relative Strength Index (RSI) reads above 55, indicating bullish momentum.

Looking at support and resistance levels, the nearest significant support zone is around $0.46, which aligns with previous resistance turned support. Below that sits support between $0.40 and $0.42. To the upside, ADA faces resistance at $0.65, followed by $0.75.

ChartMonkey analyst just tweeted bullish commentary on ADA, saying:

“ADA is forming an ascending triangle pattern and looks ready for a breakout. A successful breakout could potentially lead to a gain of 40% or more. Monitor the price movement carefully for an opportunity to capitalize on this.”

Here, the analyst is highlighting the bullish nature of ADA’s chart pattern. He expects that a decisive break above $0.65 resistance could spur a rally of 40% or more from current levels. Traders should watch closely for an upside breakout as a potential trading opportunity.

Despite this positive price acti

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Author: BeInCrypto Team

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