🌎 Cardano Price Poised for Bullish Breakout

Cardano Price Poised for Bullish Breakout Amidst Technical and Fundamental Catalysts

Despite a lackluster performance this year, Cardano is showing signs of a potential bullish breakout. Trading near the critical support level at $1, the cryptocurrency has declined by approximately 27% from its December highs. However, several technical patterns and fundamentals suggest that ADA may be on the verge of a significant bull run.

Technical Patterns Indicate Bullish Sentiment

Firstly, ADA has entered the fourth phase of the Elliott Wave pattern. This pattern has unfolded in four stages: the first wave occurred between October 2023 and March 2024, followed by a corrective second wave from March to August. The third wave extended until November, during which the coin reached the 38.2% Fibonacci retracement level at $1.3375. If the final impulse wave materializes, ADA could climb to the 61.8% Fibonacci level at $2, representing a potential 110% increase from its current price.

Additionally, Cardano has formed a triple-bottom chart pattern at $0.2636, with the neckline at $0.8130. The coin has broken above this neckline and successfully retested it, a bullish continuation signal. Furthermore, ADA has formed a bullish pennant pattern, consisting of a tall vertical line and a consolidating triangle. The triangle is nearing its confluence point, signaling that a strong bullish breakout could occur soon.

Potential Catalysts for ADA Price

Several catalysts could drive ADA price higher in the near term. Firstly, the odds of a spot Cardano ETF have risen to near 60%, up from this month’s low of 20%. An ETF approval would lead to more hype and inflows from institutional investors.

Secondly, Cardano’s futures open interest has remained strong despite the coin being in a bear market. Open interest is currently above $1.2 billion, indicating sustained demand in the futures market. This divergence could lead to further upside for ADA.

Lastly, the upcoming Midnight launch and its BitcoinOS integration could also drive Cardano price higher. Midnight will be its zero-knowledge scaling solution, while BitcoinOS will make it interoperable with Bitcoin.

Key Takeaways

ADA price is likely to rise to the 50% retracement level at $1.6685 followed by the 61.8% point at $2.01.
The prediction may take longer to happen since this is a weekly chart.
Potential catalysts for ADA price include a spot ETF, sustained futures open interest, and the upcoming Midnight launch and BitcoinOS integration.