Amid the current market recovery, the Cardano price managed to reclaim the $0.5 psychological level on February 8th. This uptick also breached the resistance trendline which carried the last five weeks’ correction suggesting the buyers are ready to regain lost growth. Will this bullish momentum hold to surpass the $0.7 mark?
Also Read: Cardano (ADA) Price Teases Key Resistance to Trigger 35% Breakout Rally
ADA Price Breakout Hints End Of Correction
Cardano Price| Tradingview
For over a month, the Cardano price has witnessed a steady correction, which plunged its value from $0.677 to $0.447. While this 33.8% downfall must have shaken out the weak-hearted traders, a notable number of ADA holders have kept their belief in higher recovery.
Recent data from IntoTheBlock reveals that 23% of Cardano ($ADA) holders have kept their investments for over five years. This significant portion of long-term holders underscores the confidence and belief in Cardano’s potential and stability, reflecting a trend of strategic, long-term investment within the cryptocurrency community.
23% of Cardano holders have held their $ADA for more than 5 years pic.twitter.com/cOn7uFo16P
— IntoTheBlock (@intotheblock) February 8, 2024
Adding on the bullish note, the recent correction in ADA price developed into a continuation pattern called the pennant pattern. This technical pattern is a common observation in strong uptrends providing buyers an opportunity to revive momentum.
Moreover, this correction trend rebounded from the 50% Fibonacci retracement level, indicating they have a firm hold over this asset. On February 8th, the buyers gave a bullish breakout from the pattern’s overhead trendline, providing buyers with a suitable launchpad for a higher rally.
Currently trading at $0.534, if the Cardano price managed to hold above the breached trendline at $0.5, the buyers could drive a rally to $0.62, followed by $0.675 and $0.75.
Technical Indicator:
Moving Average Convergence Divergence: A bullish crossover state between MACD and signal reflects a recovery trend among traders.
Bollinger Band: An uptick in the upper boundary of Bollinger band indicators reflects that the buyers are aggressive in the current market.
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