Cardano (ADA): Rallying to Break Bearish Pattern, Near $4M Mark?
• Cardano (ADA) has been experiencing a significant price rally in early 2023
• A bearish pattern has caused the price to be rejected at the upper resistance of a descending parallel channel
• Upcoming events such as the launch of the native stablecoin Djed and the Cardano-based wallet nearing $4 million may offer a bullish boost
The Cardano (ADA) cryptocurrency has been on an impressive price rally in the early days of 2023, rising over 60%. This rally has been fueled by bullish sentiment and has broken out of a daily bearish trendline, attempting to break through the resistance of a bearish pattern. Despite some bearish interruptions, the bulls managed to maintain the rally. However, the price may be rejected at the upper resistance of a descending parallel channel if the inverted impulse persists.
Analysts predict that the asset may secure the pivotal levels at the earliest and may even break out of the bearish pattern if the momentum is maintained. This could push the price to the upper resistance at $0.57, after surpassing $0.55. On the other hand, a rejection could cause the price to fall to the lower support near the 2022 bottom.
The upcoming events that could provide a bullish boost to Cardano include the launch of the native stablecoin Djed scheduled for the coming week, as well as the Cardano-based wallet nearing $4 million mark. With nearly 1000 projects being built on Cardano, a third of them being NFTs, the cryptocurrency has a promising future.
In conclusion, Cardano (ADA) is currently in a critical position and its price action in the coming days will decide its future direction. If the cryptocurrency manages to secure the pivotal levels, it could rise to new heights. However, it’s important to note that the asset is still in a bearish pattern and a rejection may cause it to fall back to the bearish trendline.