Cardano (ADA) is about to confirm a possible break-out from a technical analysis pattern. According to a renowned analyst, ADA could reach $0.78 per token in the short term if the price chart plays as expected.
Essentially, Ali Martinez (@ali_charts) spotted a symmetrical triangle on Cardano’s 4-hour chart. This triangle is formed when an asset trends sideways, making lower highs and higher lows as volatility slows down.
In particular, Martinez posted his analysis on December 27 at 13:40h (UTC), setting a target price of $0.78. However, this target is only possible if ADA breaks out from the symmetrical triangle.
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These conditions usually depend on a candle closure and successful retests as a validation. In this case, Ali Martinez explained that Cardano’s 4-hour candle must close above $0.63 in a sustainable manner.
Cardano break-out and price analysis
Interestingly, ADA is trading at $0.628 as of writing, with less than three hours left for a 4-hour candle closure. Cardano is already struggling to maintain its price above the $0.63 threshold, which was achieved a few minutes before press time.
Therefore, Cardano traders and investors are now waiting to see if ADA will meet Martinez’s condition. A break-out confirmation is crucial for a sentiment pivot from neutral to bullish, igniting a short-term rally for Cardano’s native token.
Nevertheless, failing to break upwards would put ADA back into the triangle range. Thus threatening a bearish dominance if it finally breaks this pattern downwards.
All things considered, trading chart patterns are a probability and uncertain game. The cryptocurrency market is highly volatile, and anything can happen in the short term. Speculators must remain cautious and apply proper risk management in their operations.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
