Cardano price rallied nearly 12% last week before stabilizing around $0.25 on Tuesday. Now it is close to confirming a bullish reversal pattern on the charts that could position it for more upside in the coming sessions.
Summary
- Cardano price rose 12% last week to $0.266 before easing to $0.25 as profit-taking set in.
- Progress on the Protocol 11 upgrade and growing institutional use of the Midnight sidechain are boosting sentiment.
- A potential falling wedge breakout could push ADA toward $0.30, while downside risk remains at $0.23 if macro tensions escalate.
According to data from crypto.news, Cardano (ADA) price rose 12% last week to $0.266 on Friday before settling a little lower at $0.25 on Tuesday as investors booked profits.
The token could continue to see more upside in the coming sessions owing to three primary catalysts that have bolstered investor sentiment recently.
First, Cardano developers have recently made significant progress toward the Van Rossum hard fork, also known as the Protocol 11 upgrade. The upgrade would optimize the Plutus smart contract environment and enable dApps on Cardano to execute more efficiently and handle higher transaction volumes on the network.
Second, Cardano’s Midnight sidechain mainnet has been gaining increased institutional traction since its launch in late March. Regulated institutions like Monument Bank have already begun leveraging Midnight to tokenize £250 million in real deposits. Additionally, over 200 German companies were recently revealed to be using Cardano as a security and identity layer for AI microtransactions.
Third, institutional and whale holders have also shown strong accumulation of Cardano over the past month. Such large-scale accumulation often piques the interest of retail investors who follow the lead of major market participants as a signal of long-term value.
On the daily chart, Cardano price is close to breaking out of a falling wedge pattern formed of two descending and converging trendlines. A breakout from the upper side of the pattern typically leads to a bullish reversal in an asset’s price action over the following sessions.
The daily RSI sits at the neutral threshold of 49 while the MACD lines trade below the signal line. Both these indicators suggest that the asset may need a brief period of consolidation before its next leg higher.
For now, the immediate resistance for Cardano lies at $0.26. A break above this level could provide the momentum needed to potentially reclaim the $0.30 psychological barrier.
On the contrary, if the U.S.-Iran war worsens over the coming days, the token could revisit its local low at $0.23 as investors flee to safer assets.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
Go to Source to See Full Article
Author: Rony Roy
