- Cardano price sees bulls shaking off last week’s performance quite quickly.
- ADA price made a nice recovery over the weekend and seeks to continue it this week.
- A bullish triangle formation is the playbook for now with a breakout above $0.39.
Cardano (ADA) price is seeing bulls quickly pick up their feet after a downbeat moment the week before. ADA quickly recovered over the weekend with some substantial losses being pared back. Expect to see a continuation this week as a bullish triangle is in play that will push ADA above $0.39 for a 10% gain.
Cardano price hands bulls playbook for this week
Cardano price suffered quite some losses last week and at one point was even flirting with a break below the always-important 200-day Simple Moving Average (SMA). Things could not have looked any grimmer than on Friday at the US closing bell. Markets showed how relentless and how quick a turnaround can be staged as bulls were quite quickly back on their feet, retaking ground on Saturday and Sunday.
ADA from here is trading nicely along the green ascending trendline, which although it has been broken still holds its support as a guideline for a bullish triangle. The base for that triangle is near $0.39 and would see bulls paring back the losses from last week. Specific attention is required for that 55-day SMA just above $0.39, because that could mean bulls are heading toward $0.42 in the long run.
ADA/USD 4H-chart
Should the supportive trendline snap, expect to see a quick leg lower as the bulls would vacate the premises quite quickly. An unwind of the positions would quickly see ADA back at $0.35, flirting with a break below the 20-day SMA. Once bears advance, expect a quick leg lower to $0.34 that tests the low of late March.
