- ADA/USD charts a bull pennant on the 12H chart.
- A test of the $2 mark appears inevitable if the bullish pattern is confirmed.
- RSI has regained upside momentum, well above 50.00.
Cardano (ADA/USD) is extending its recovery this Sunday after a sharp sell-off witnessed a day before.
The seventh most widely traded cryptocurrency is consolidating its stellar advance to a new record high reached Friday at $1.8124. The token has risen about 23% over the past seven days while up 2.50% in the last 24 hours.
ADA/USD: Aims for $2 on a sustained break above key $0.6785 resistance
ADA/USD’s 12-hour chart paints a constructive outlook, as the coin is on the verge of a bull pennant break.
A 12-hour candlestick closing above the falling trendline resistance at $0.6785 is expected to validate the upside break, calling for a test of the measured pattern target at $2.1225.
The Relative Strength Index (RSI) has rebounded, now heading north once again, currently hovering around 66.50. The leading indicator suggests that there is additional room to the upside.
ADA/USD: 12-hour chart
Alternatively, if the sellers return, then the immediate support is seen at the rising trendline support at $1.5706.
Acceptance below the latter could invalidate the bullish formation, which could imply a trend reversal.
The next best safety net for the ADA buyers then awaits at the $1.50 round figure.
Further down, the upward-sloping 21-simple moving average (SMA) at $1.4495 will be on the sellers’ radars
The last resort for the optimists is envisioned at Thursday’s low of $1.4307.
All in all, the path of least resistance for the ADA price appears to the upside.