Cardano’s Price Patterns:
As cryptocurrency enthusiasts continue to keep a close eye on the market, one coin that has been gaining significant attention is Cardano (ADA). In 2020, Cardano saw a monumental surge in price, rising from around $0.04 to an all-time high of $1.45 in just a few short months
(January to September 2020)
. Now, as investors watch the market for potential opportunities, many are asking, “Will Cardano hit $6 next?” Let’s take a closer look at some
price patterns
that may provide insight into this question.
Fibonacci Retracement: One popular analysis tool used by traders is Fibonacci retracement levels. These levels indicate potential price reversals based on the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 76.4%. In Cardano’s 2020 rally, we can observe several significant price reversals aligning with these levels (see link). For instance, there was a noticeable pullback around the 38.2% level and another correction at the 50% mark before the final surge to the all-time high.
Head and Shoulders: Another bullish pattern that may have played a role in Cardano’s price movements is the “head and shoulders” formation. This pattern consists of three distinct peaks, with the middle peak being the highest (the “head”) and the two surrounding peaks being lower (the “shoulders”). This pattern is typically considered a reversal pattern, suggesting that prices will continue to rise after the formation’s completion. Cardano exhibited this pattern in mid-2020, with a clear “left shoulder” and “right shoulder” formation leading up to the all-time high.
Support and Resistance Levels: Cardano’s price history shows several key support and resistance levels. A support level is a price point where buyers are likely to enter the market, preventing further price declines. Conversely, a resistance level is a price point where sellers are likely to enter the market, capping potential price increases. Some significant support and resistance levels for Cardano include $0.12, $0.25, and $1.13.
In conclusion, Cardano’s price patterns during the 2020 rally offer some insight into potential future movements. The Fibonacci retracement levels and head and shoulders formation suggest that $6 could be a viable target for Cardano’s price. However, it is essential to consider these patterns in conjunction with other technical and fundamental analysis methods before making investment decisions.