Is ADA Ripe for a Breakout to $0.46?

2021-02-02 08:00:00

Cardano price is in the green today as demand for the currency continues to rise. The ADA price is trading at $0.410, which is a few pips below yesterday’s high of $0.4290. Its market capitalisation has jumped to more than $12.4 billion, making it the 6th biggest digital currency in the world.

Cardano news: There’s no major news moving the Cardano price higher. This week, it was revealed that Grayscale Investments had decided to file for a Cardano trust. It will also form another trust for Monero, Cosmos, and EOS in addition to its other well-known trusts of Ethereum and Bitcoin. In theory, this will lead to more demand for Cardano and other currencies. 

Another major Cardano news is that the company behind it plans to create its own stablecoin.

Cardano price prediction

Last week, I wrote that the ADA price was ripe for a bullish breakout. I pointed to the bullish pennant that started to form in January. This prediction was correct as the price broke-out to its 2018 high of $0.4322. 

Looking at the same chart, we see that it has found some resistance. This is expected since the price is at its ATH. Still, there is still a possibility that the price will have a bullish breakout as bulls start targeting the next vital resistance at $0.4500. However, this prediction will be invalidated if it moves back to $0.3500.

Correction

An earlier version of this article mentioned that Cardano had reached an all-time high. That has been corrected since ADA reached an ATH in 2018.

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ADA price chart

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