- Cardano price proves resilient in a sea of red in the cryptocurrency complex.
- ADA tags cup-with-handle measured move target, yielding a 65% gain for investors.
- Daily Relative Strength Index (RSI) is still not overbought.
Cardano price climbs leaderboard with a surge in relative strength, providing patient investors with an opportunity to seize upon the bullish attention garnered by ADA’s lesser carbon-intensive ecosystem. Any consolidation at this point should prove to be temporary.
Cardano price at a three-year high against Bitcoin
On a Bitcoin basis, ADA has emerged convincingly from a Cup Completion Cheat pattern this month after correcting in March and April. Last week, the pair registered the largest two-week gain since January 2018 and rallied above the 50% retracement of the massive 2018-2019 decline at $0.00004592.
ADA/BTC weekly chart
On May 5, guided by a 16% gain, Cardano price emerged from a cup-with-handle base, establishing a trend change for ADA following months of consolidation. The initial post-breakout price action was reluctant, but the profile of the daily volume remained unwavering, showing no signs of distribution. The awkward price action was soon reconciled with a powerful, bullish engulfing day on May 13, covering the previous six trading days and closing with a 23% gain.
In an FXStreet article published on May 13, it was concluded that Cardano price would extend the breakout from the cup-with-handle base to the measured move target of $2.40, representing a 65% gain from the handle breakout at $1.46. On May 15, Cardano price reached a high of $2.46 while overcoming the resistance of the 161.8% Fibonacci extension of the April correction at $2.23.
Cardano price stumbled yesterday, but price momentum still favors higher prices moving forward. The path could be a slow, staggered advance or, if the cryptocurrency complex sentiment improves, a blow-off type of move, similar to MATIC over the last few days. The blow-off move should carry ADA to $3.00, representing a 50% gain from price at the time of writing, or even to the 261.8% extension of the April correction at $3.93.
ADA/USD daily chart
Things can change instantly and often quickly in the cryptocurrency market, so investors need to be prepared for a bearish scenario. If ADA has entered a consolidation, it should hold the May 9 high at $1.89 on a daily closing basis. The next viable support arrives at the confluence of the May 13 low at $1.32, with the 50-day simple moving average (SMA) around $1.42.