- The Cardano course is caught in a pennant.
- The ADA course is being pressured by both camps.
- Expect a breakout to the top of the pennant.
The Cardano (ADA) price has been consolidating in a pennant for a week and it looks like it’s breaking out to the top. The bulls can look forward to a 28% profit on $ 3.02.
Cardano price builds momentum for an upside breakout
The pennant began development on September 8th with a confirmed test on the underside on September 10th and 13th. Each time, buyers stepped in and hit higher lows. On the bottom of the pennant, the red descending trendline that started on September 2nd is still in play. With three solid test runs, it can count as a double element: once as part of the pennant and the second time as an independent descending trend line. Buyers were trying to break out of the pennant above the red descending trendline but failed with a double top formation and profits were rolled back the next day.
The Cardano price has since consolidated with lower highs, while still respecting the red descending trendline and thus playing off buyers and sellers against each other. It’s a highly competitive battle, but judging by the monthly pivot at $ 2.35, it looks like buyers are ready to take the plunge.
ADA / USD daily chart
The ADA monthly pivot course seems like a key element in the mix with the pennant. Judging by his behavior, the pivot level served as a launch pad for buyers to drive prices up. This will certainly hurt the short term sellers as they lick their wounds and are not ready to jump in anytime soon. This reduces the interest of the sellers and increases the momentum of the buyers. Next up is a rise to break the red descending trendline. From there it would be a quick jump to $ 3.02.
Should the sellers take over the Cardano course, a break of the black ascending trend line in the pennant is to be expected and a decline towards $ 1.89 is to be expected.