Home Price Analysis Cardano Rallies 35% in a Bullish Breakout Pattern; is ADA set for...

Cardano Rallies 35% in a Bullish Breakout Pattern; is ADA set for $1.60?

Cardano is the top-performing asset in the top 10, racing 35 percent in the past trading week and outperforming assets like BTC within the same time frame.

Notably, ADA is now trading above $1 in a bullish breakout pattern following impressive gains traced to early last week. At this pace, and based on renewed interest in the project, the odds of Cardano extending their gains—and bottoming up from 2022 lows, remain high.

Cardano DeFi and NFT Ecosystem Growing

The main driver of ADA to spot rates could be attributed to the growing ecosystem. For instance, roughly six months after activating the Alonzo upgrade and smart contracts, Cardano DeFi protocols control over $300 million of assets with a growing list of projects.

Recently, Cardano’s founder, Charles Hoskinson, stated that over 500 projects are on the wings, ready to deploy once Cardano upgrades its mainnet via the Kiln Hard fork.

Meanwhile, as Cardano DeFi TVL explodes, the network has minted over four million NFTs, or native tokens, guided by more than 50k different policies. This blend of assets and policies is sufficient evidence to point to Cardano builders’ diversity and how the blockchain is rapidly growing in market share, gnawing on Ethereum.

The Age of Basho

The number of DeFi dApps and NFT projects in Cardano is only expected to grow as the network finds adoption and optimizes its processes in the Basho stage. As per the project’s roadmap, the immediate goal is to enhance the network on scaling and performance, improving user experience—and thus, inevitably value.

Cardano Technical Analysis

Cardano

The ADA price is up 35 percent in the last trading week versus the USDT.

Based on the formation in the daily chart, buyers are in the driving seat. At spot rates, ADA is trading within a bullish breakout pattern, surging above $1 and the multi-week resistance (now support) trend line as prices bottom-up after posting sharp losses from mid-Q4 2021. Notably, bull bars are banding along the upper BB with rising volumes pointing to trader participation. At the same time, the middle and the upper BB are diverging, a pointer of high volatility—and thus an opportunity for aggressive traders.

As a result, ADA traders may find loading opportunities above $1—or on every dip within last week’s trading range—with targets at $1.20 in the immediate term for scalpers. A high volume thrust above $1.20 would likely be another solid base for a rally towards $1.60—or January 2022 highs—for a 30 percent rally from spot rates.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.


If you found this article interesting, here you can find more Cardano News

Dalmas Ngetich
Dalmas is a very active cryptocurrency content creator and a highly regarded technical analyst. He has worked in various media as an analyst. He is passionate about blockchain technology, the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through writing about his knowledge and analysis of coin price charts.
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