- Cardano price ended last week up 8.50% and recorded the third consecutive positive week.
- ADA broke out from a symmetrical triangle pattern and registered a daily and weekly close above the strategic 2018 high of $1.40.
- The 50-day simple moving average (SMA) has turned higher, introducing new, credible support for the current rally.
Cardano price printed a daily close above the 2018 high on August 6, marking the first time since July 7 and establishing a basis to extend the rally beyond the July 4 high of $1.50 based on the measured move of the symmetrical triangle. Moving forward, ADA needs to confirm the rise above $1.40 with a daily close above $1.50 before investors can confidently adopt a bullish narrative for the cryptocurrency.
Cardano price close, but still far from shining again
Cardano price has climbed 40% since July 21, based on the price at writing. It is a strong return, but compared to other altcoins, it is subpar, with Ethereum, for example, climbing over 70%. However, the resulting resolution of the symmetrical triangle has motivated ADA to close above the 2018 high of $1.40 on a daily and weekly basis, generating a minor breakthrough for the digital token.
The measured move of the symmetrical triangle is almost 22%, proposing an ADA price target of $1.74 from the breakout above the triangle’s upper trend line on August 5 and the potential for Cardano price to rally an additional 18% before tagging the target.
A boost to the ADA outlook for better outcomes is activating the bullish Golden Cross pattern on the six-hour chart, increasing the momentum quotient for Cardano price. The previous Golden Cross on the six-hour chart was noted in November 2020, before the 80% jump in the month.
If Cardano price does gain additional upside momentum from the Golden Cross, ADA has the potential to test the June 3 high of $1.89, representing a gain of over 28% from the current price.
A daily close below the 2018 high introduces a challenge for the developing bullish narrative. Thus it is essential that Cardano price sticks above $1.40 or risk defining the top of another failed ADA rally above the critical level, as was the case in early July.
ADA/USD daily chart
Of course, Cardano price could struggle and lose the 2018 high. The downside levels of importance include the bottoming 50-day SMA at $1.30 and the 200-day SMA at $1.24.
ADA is on the cusp of shining again, but it will require a daily close above the July 4 high of $1.50 to be confirmed. Nevertheless, the pieces are coming together, such as the successful breakout from a symmetrical triangle continuation pattern, the weekly close above $1.40 and the Golden Cross on the six-hour chart.
Here, FXStreet’s analysts evaluate where ADA could be heading next.