Cardano price eyes breakout as ADA targets a 6X surge to $4.50, fueled by a key ascending channel pattern signaling bullish momentum.
Cardano (ADA) is anticipating a potential rally to a new all-time high of $4.50 due to the completion of a critical market pattern known as the ascending parallel channel.
The potential for a sixfold increase in ADA’s value from current prices is indicated by a successful breakout from this setup.
This technical formation is reminiscent of the channel configuration in place in 2021, immediately before the 2,800% increase in ADA’s value to $3.10.
Cardano was trading at $0.766 at the time of publication, following an 8.10% increase in the previous week.
Cardano Price Is Focused On 6X Rally To New ATH
A weekly chart that displays ADA trading within an ascending parallel pattern suggests that Cardano price is on the brink of a substantial increase to $4.50.
This pattern frequently precedes upward breakouts and presently implies that the price of Cardano could increase by sixfold in the upcoming weeks.
A rally that could propel the cryptocurrency beyond the $1 psychological mark and bring it closer to the all-time high at $3.10 could be initiated by a successful push past the upper trendline of the parallel channel neckline, which is located at approximately $0.7600.
The ascending parallel pattern is a bullish continuation pattern established when the price is contained within two upward-sloping, parallel trendlines.
This pattern typically signifies the direction of the trend by indicating higher highs and higher lows.
The target of $4.50 was determined by adding the height of the parallel channel to the breakout point, as the price has already closed past the upper trendline of the parallel channel.
Additionally, the current price action is favorable, as indicated by Cardano’s Relative Strength Index, which is currently at 51.49.
In 2021, Comparable Bull Fractal Resulted In 2,800% Increase
As indicated by historical data, Cardano’s 2021 rally to a new all-time high was characterized by an ascending parallel channel pattern.
The price experienced a significant 2,800% increase to $3.10, following a consolidation period between $0.10 and $0.20, per TradingView.
Key Levels To Monitor In Event Of Breakout
Cardano price can potentially experience a significant breakout rally following its $0.75 resistance level breach.
Traders should look for three primary targets: $2.07, $3.10, and a new ATH around $4.50, which could be the next stop.
Additionally, the psychological mark of $1 should be considered.
If the buying pressure diminishes, Cardano’s price could decline below $0.3977, thereby losing the support level.
This would further undermine the bullish prognosis.
Final Thoughts
According to the Cardano price forecast, the ascending parallel channel pattern, a previous market fractal that resulted in the 2021 rally, and the formation of higher lows, which indicate sustained demand, suggest that Cardano is on the brink of a historic breakout.
