ADA could retrace in the short-term before massive 20% breakout

2021-03-03 14:02:30

  • Cardano price broke out of a descending triangle pattern on the 1-hour chart.
  • A key indicator has just presented a sell signal in the same time frame.
  • Bulls aim for a long-term price target of $1.5.

Cardano has been trading sideways since its high of $1.48 established on February 27. The digital asset just had a significant breakout from an important pattern and aims for a high of $1.5 in the long-term.

Cardano price needs to hold key support level

Cardano formed a descending triangle pattern on the 1-hour chart from which it broke bullishly. The digital asset has not seen a lot of bullish continuation just yet and the TD Sequential indicator has just presented a sell signal which can push Cardano down to the previous resistance trendline at $1.21.

ADA/USD 1-hour chart

However, as long as the bulls can defend the key support level at $1.21, the long-term price target of $1.5 will remain intact. In order to invalidate the sell signal, Cardano needs to climb above the previous high of $1.266. 

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