- The Cardano price ended the last week with a plus of 8.50% and recorded the third week in a row.
- ADA broke out of a symmetrical triangle pattern, closing daily and weekly prices above the 2018 strategic high of $ 1.40.
- The 50-day simple moving average (SMA) has turned up, providing new viable support for the current rally.
The Cardano price closed on August 6 for the first time since July 7 on a daily basis above the 2018 annual high, creating the basis for the rally to extend beyond the July 4 high of $ 1.50 based on the imputed high Movement of the symmetrical triangle. Moving on, ADA has to confirm the move above $ 1.40 with a daily closing price above $ 1.50 before investors can confidently accept a bullish narrative for the cryptocurrency.
Cardano price not yet like in the old days
The Cardano rate has increased 40% since July 21st, based on the rate at the time the article was written. This is a strong return, but when compared to other altcoins, it is below average. Ethereum, for example, comes in at over 70%. However, the resulting dissolution of the symmetrical triangle has motivated ADA to close above the 2018 high at $ 1.40 on a daily and weekly basis, giving the digital token a small break.
The imputed price potential from the symmetrical triangle amounts to almost 22%. That’s an ADA target of $ 1.74 from the break above the upper trendline of the triangle on August 5th.
A boost to the ADA outlook for better results activates the bullish golden cross pattern on the six-hour chart and adds momentum for Cardano price. The last golden cross on the six-hour chart was observed in November 2020, before the price jumped 80 percent this month.
If the Golden Cross gives Cardano price some additional boost, ADA has the potential to test the June 3rd high at $ 1.89, an increase of over 28% from current price.
A daily close below the 2018 high presents a challenge to the evolving bull market narrative, so it is critical that Cardano stay above $ 1.40 or risk the top of another failed ADA -Rally is defined above the critical level, as was the case in early July.
ADA / USD daily chart
Of course, the Cardano price could run into problems and lose sight of the 2018 high. Important levels on the downside include the 50-day line at $ 1.30 and the 200-day line at $ 1.24.
ADA may shine again, but it needs a daily close above the July 4th high of $ 1.50. Nonetheless, the pieces fit together, such as the successful breakout of a symmetrical triangle, the weekly closing price above $ 1.40 and the golden cross on the six-hour chart.