Cardano was bullish on the short term charts as it broke past all-time highs. Its market cap has also grown recently, and ADA currently ranks fourth on the list of the best cryptocurrencies by market cap.
30-minute Cardano price graph
A bullish pattern has been observed on the charts, but there is also a downward trend in the lower timeframes. ADA has been steadily rising for the past two weeks. The key levels in this rally were $ 0.3, $ 0.35, $ 0.45 and $ 0.55, and the ADA beat them all.
IOHK is releasing successive announcements regarding the February update, which is basically a hardfork for deployment of the Mary update on the Cardano public test network. It is stated in the new update that users will unlock the mechanism to create their own tokens for numerous applications. This is exciting news for ADA adoption and could play a role in raising prices.
There is a possibility of a retracement but has not yet been signaled for ADA.
The 30-minute chart shows the bull flag. This envisions a technical target of $ 0.755 for the ADA to reach in the next few hours. The highlighted region indicates a bullish target for ADA, while Fibonacci retracement levels point to support zones.
For the bulls, the 30-minute chart was a slight concern, while the 1-hour chart also showed a decrease in bullish momentum. This bearish divergence could prevent ADA from reaching a target of $ 0.755.
Going below $ 0.64 would invalidate the bull flag model, which offered ADA the goal of making a profit of $ 0.755. The downward trend has been seen but is not over yet. A high trading volume Doji hourly candle may signal a short term reversal for ADA.