Cardano Price To Hit $2? Bullish Pennant Pattern Suggests Same

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  • A bullish pennant formation appeared on the daily chart, indicating a rally toward $2.
  • ADA price surged more than 4% intraday and traded in an uptrend.

Cardano (ADA) has gained buzz in the market, with rising price tendencies indicating an imminent bullish breakout. Trading at $1.01, up 3.98% at press time, the Cardano price action showed a massive move on the horizon.

A rise in trading volume of over 24% reflects growing accumulation. The ADA Cardano market cap soared to $35.19 Billion, ranked 9th in the overall crypto market.

Is Cardano (ADA) Poised for a Breakout: Analyst Insights

A recent post by World Of Charts on X highlighted that Cardano’s 6-hour chart revealed a textbook bullish pennant pattern. It was a consolidation phase following its recent rally.

The sideways Cardano price action in the last two weeks above the 20-day EMA mark reflected growing market indecision. Following a significant price rally in the previous 45 days, the token’s movement indicated that further rise is imminent.

x
Source: X

According to the analyst, a similar Cardano price action was seen in November 2024. That resulted in a 3x move. This time, the analyst predicted that a break above the $1.15 resistance level could unlock further upside. Furthermore, the ADA Cardano may reach the $2 mark as an immediate target.

Cardano Price Analysis: Is a Rally Possible?

Per the daily timeframe analysis, the Cardano price trades around the $1 round level and sustained gains at the 20-day EMA mark. The recent price action signified a sideways move, and a bullish pennant pattern emerged. That hinted a potential bullish rally ahead.

ADA Price Chart
ADA Price Chart | Source: TradingView

The Relative Strength Index (RSI) line was at neutral 50, indicating room for growth without entering overbought territory. Additionally, the On-Balance Volume (OBV) remained at the higher zone.

The ADA Cardano may maintain upward movement and hold ground above the $1 mark. If this happens, a potential move could be inevitable.

However, the resistance level around $1.30 may still pose some challenges in the short term. At the same time, the support for Cardano price at $0.90 could provide a cushion in case of minor pullbacks.

Until the ascending trendline was not breached, the upward trend remained intact. Moreover, the ADA Cardano coin could resume the bullish movement.

Cardano Futures Market Fundamentals

Besides the technical perspective, the futures market data reflects an equally promising outlook. Data from Coinglass shows that ADA’s liquidation data revealed $202.42k in longs compared to $170k in shorts. It highlighted a slight bullish sentiment.

Liquidation Data
Liquidation Data | Source: Coinglass

Moreover, the Open Interest (OI) has risen over 3.20% to $1.32 Billion. This reflected a rise in long buildup activity in the past 24 hours.

Further evidence of potential rally continuation was highlighted by the positive OI-weighted funding rate over the past five weeks. It stayed at 0.0097% at press time.

This means a heightened demand for long contracts could fuel a further upsurge. A high OBV and increasing Open Interest underscored positive market sentiment. Furthermore, it could unleash a breakout move soon.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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