- Cardano has had its price consolidating for nearly two weeks, suggesting a possible explosive breakout.
- The RSI divergence with price suggests a 20% upswing to $1.
- A 24hr candle close beneath equal lows around $0.766 will print a lower low, invalidating ADA’s bullish thesis.
Cardano remained stuck within a constricted range for nearly fourteen days with brief daily returns. The sideways action indicates what happened in January and suggests a potential bullish breakout.
Cardano Awaits Volatility Blast
Cardano displayed volatility absence as ADA maintained sideways trading from 22 January to 3 February. The consolidation triggered a bullish move that saw ADA rallying 24% to print a swing peak near $1.26.
Nevertheless, the strength wasn’t adequate and saw retracements towards lower regions. As the alt records tighten range again, sideways mimic earlier trends. Surprisingly, the Relative Strength Index formed higher lows since 21 February as ADA printed lower lows. Such developments indicate a bullish divergence formation.
This technical setup predicts a bullish action for the ETH-killer, supporting the bullish theory. A breakout will have Cardano’s price gaining 20% to tag the psychological area at $1.
On the other side, Bulls failing to support upside narrative might see ADA sliding lows and gather liquidity beneath equal lows around $0.776. The liquidity run means another chance for ADA buyers to launch a comeback.
Nevertheless, a daily candle close under equal lows of $0.776 will form a lower low and cancel ADA’s bullish narrative. Such action will clear the road for Cardano to hit the support floor at around $0.676, following a 13% plunge.
ADA Bulls in Control
Cardano has seen bearishness lately as bears eyed the liquidity beneath $0.74. However, the downward outlook might have faded as multiple indicators suggest a bullish confluence. ADA created an optimistic inverted hammer on its 2-week chart. Secondly, the RSI has this inverted hammer precisely around 40, considered a max low by technical analysts. Finally, the volume profile indicates fading bearishness. Investors might consider lower timeframes entry as bulls aim at $1.0 or $1.18. Let’s watch for upcoming price reactions.