Cardano Price Hold Above Key Support Sets the Next Recovery Leap to $1 

Cardano price: Earlier this week, the crypto market witnessed a sudden sell-off which plunged the Bitcoin price from a new all-time high of $69000. The overhead supply spread to altcoin including Cardano which recorded over 10% fall on March 5th. However, the daily chart also projected long-tail rejection which indicates the buyers are defending their new support. The accumulation at the market dip is a key signal of sustainable recovery.

Cardano Price Holds Strong Above the $0.68 support

Cardano Price| tradingview

ADA, the native cryptocurrency of the Cardano ecosystem has witnessed steady growth for the past five weeks with a price jump from $0.447 to $0.79. This 78% upswing backed by an occasional pullback and increasing volume reflects the ADA price is witnessing sustainable growth.

An analysis of the daily chart showcases this rally as the development of a bullish reversal pattern called cup and handle breakout with neckline breakout from March 1st. This breakout signals a buyer’s escape from the long accumulation phase and the emergence of a new rally.

Despite the recent market sell-off, the ADA price showed sustainably above the breached neckline at $0.68. In the last two days, altcoin has surged 8% to trade at $0.75 currently. Under the influence of this pattern, the buyers will drive the Cardano price to a theoretical target of $1.146, registering 51% potential growth.

On a contrary note, a breakdown below $0.68 will indicate the weakening of bullish momentum and may spark a new correction trend.

Technical Indicator:

• Bollinger Band: An upward arch in the Bollinger Band indicator highlights that buyers continue to dominate this asset.
• Moving Average Convergence Divergence: A bullish crossover state between the MACD(blue) and signal lines higher the recovery trend remains intact.

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