Technical Analysis and Market Entry: ADA/USDT Big Bull Pennant Breakout Invites Greater Momentum
- Cardano’s ADA has been rallying for five consecutive weeks, with further moves north still eyed.
- ADA/USDT has produced a potential double bottom formation via the monthly chart view.
ADA/USDT: Recent Price Behaviour
Cardano’s ADA is currently on a tremendous bull run, looking very promising as it is well on its way to a more significant recovery. The price has managed to move back to its highest levels that have been seen since August 2019. ADA/USDT printed a high up at $0.059000 during last week; a price last observed when the market was well within the control of the bears.
The price was forced to depressed levels of $0.030500 in December 2019, which at the time were the lowest seen since December 2018. Fortunately, a well-known area of demand was able to attract enough buyers, keeping the price propped up. It was within this noted territory, $0.035000 – 0.028000, where ADA/USDT staged the current rebound.
Monthly Chart View
ADA/USDT was able to close January in the green, which marked the first positive closure seen since October 2019. It was the best monthly performance since March 2019, gains of some 86% were achieved. Price action appears to have constructed a potential double bottom formation. The first low area hit in December 2018, with the second in December 2019. A neckline can be eyed up at around $0.099500, where ADA had topped in June 2019.
If the bulls can maintain the current pace of momentum, it would likely result in the neckline being retested and breached. Should the breakout be seen, another wave of buying pressure could then be observed. The distance between the bottom and the neckline of the structure, should then as a textbook move see the same move upon the breakout.
Weekly Chart View
There isn’t a sign of any slowdown of upside pressure, via the weekly chart view. ADS/USDT is running towards its fifth consecutive week in the green. It is the best run higher seen since March-April 2019. Price action demonstrates that there is still room for further moves to the north.
Price action via the daily chart view has recently broken out to the upside from a bullish pennant structure. Given this price behaviour, buy positions remain very much attractive. In the last ADA/USDT article, the targets of $0.053000,$0.063000 and then $0.067000, were noted. Further entries around the current market price are of interest, with the prior noted targets, in addition to; $0.070000 and then $0.080000. Stops to be placed below the pennant at $0.052000.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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