Cardano Price Strikes a 3-Year Barrier For 82% Breakout Rally

During Wednesday’s market session, the crypto market experienced a strong inflow as Bitcoin stands inches away from the $100k breakout. This bullish momentum is likely to extend to the altcoin market, where major cryptocurrencies, including ADA, are showing signs of a potential breakout. The Cardano price doorstep of this 3-year resistance with a bullish pattern in play signals potential for a directional uptrend.

By press time, the ADA price trades at $1.19 with an intraday gain of 0.46%. According to Coingecko, the asset’s market cap stands at $42.6 Billion, while the $2.6 Billion.

Key Highlights:

• The rounding bottom pattern displays growth potential for Cardano price past the neckline breakout.
• The ADA price is 3.6% away from surpassing the 3-year-long resistance of $1.24.
• The momentum indicator ADX in the overbought region hints at a potential pullback before buyers resume the prevailing uptrend.

Rounding Bottom Formation Signals a Bullish Roadmap for Cardano Price

Since last month, the Cardano price has recorded a massive rally from $0.32 to $1.19, registering a 267% rally. The recovery started with the U.S. election and gained further traction as Cardano patterned with BitcoinOS (BOS) and witnessed whale accumulation.

An analysis of the weekly chart shows the ADA’s potential for a prolonged uptrend with a rounding bottom pattern. Shaped like a “U,” it develops over three phases: a gradual decline, a stable consolidation forming the rounded base, and a breakout characterized by rising prices.

Currently training at $1.2, the Cardano price is 3.6% short from challenging the 3-year-long neckline resistance of $1.24. According to Coinglass data, ADA futures open interest surged from $217 million to $1.1 billion amid the price rally, highlighting a significant uptick in market activity and trader confidence in Cardano’s price trajectory. This sharp increase indicates strong anticipation of heightened volatility or a bullish breakout.

ADA Futures Open Interest | Coinglass

If the pattern holds true, the ADA buyers could chase a $2.2 target, indicating a potential growth of 82%.

ADX Signals Potential Pullback Ahead of Breakout

While Cardano price shows potential for a key breakout, the momentum indicator ADX at 60% highlights an overextended rally in the daily chart. Thus, the ADA coin could need a potential pullback to recuperate the bullish momentum before the key breakout.

The 4-hour chart displays a dynamic support trendline whose breakdown could signal upcoming correction in this altcoin.

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