The digital asset market is filled with lots of ups and downs. Volatility is always consistent in the space as crypto prices drop and rise every now and then. The digital currency, Cardano (ADA) recently hit an 8-month low. This occurred last month after the sudden disruption in the market. It was when the price of Bitcoin suddenly fell on September 24. As the value of the asset struggled to push back to its previous levels, it has managed to consolidate at the $0.038 to $0.039 price positions. However, the charts have indicated that there may be a bullish breakout in Cardano’s price pattern.
How the Cardano 4-Hour Chart Looks
The 4-hour chart of the ADA/USD pair showed that the price of Cardano entered an ascending triangle trend line after the price of the coin dropped on the 24 of September. This action was confirmed by the digital currency’s lowering volumes since then onwards.
An ascending triangle action was seen when the Cardano price moved between multiple converging patterns. Were the top trend line was horizontal. While the bottom trend line was sloping upward.
Once this kind of price pattern has been formed, there’s a 63% chance of an upwards breakout. Besides, the MACD indicator has supported this and the signal line is looking like it wants to turn bullish.
While the price of ADA did test $0.0399 (a major resistance point), it failed to break past the ascending triangle. Hence, we can anticipate a breakout in coming days.
Once the charts show that ascending triangle is broken, the price must test the $0.0435 area, after which it could move as high as the $0.054 position. It could form an inverted Bart pattern. However, historical data makes us conclude that the price of the coin can only rise to the $0.045 point.