Cardano Cup-and-Handle Breakout Signal Suggests Massive Move Towards $040

As Cardano price breaks out of the cup-with-handle pattern, the $0.40 area becomes the next bullish target. Amid the bullish trend exhibited in the cryptocurrency market, Cardano is experiencing a breakout amid growing optimism about the bull run. The completion of this trend continuation pattern suggests that ADA could rise to $0.40. As the tenth largest cryptocurrency with a market cap of $13.29 billion and up 10.76% in the past seven days, Cardano is showing a healthy recovery. Can this momentum help Cardano climb higher in the cryptocurrency rankings?

Cardano’s Cup with Handle Breakout
On the 4-hour chart, Cardano’s price action is showing a breakout from a cup-with-handle pattern. The pattern’s neckline is located at $0.36, with the recent bullish reversal showing a breakout pull-up. According to the Fibonacci levels on the 4-hour chart, the breakout has surpassed the 61.80% Fibonacci level at $0.366. Over the past five days, Cardano’s price has risen by 12.80% from a double bottom reversal near $0.328 to its current price of $0.37.

Cardano Price Chart
Technical indicators continue to support Cardano’s bullish outlook as the recovery gains momentum. Notably, the 50 and 200-day exponential moving averages have formed a golden crossover on the 4-hour chart. Moreover, the 100 and 200-day exponential moving averages are also close to a bullish crossover. The MACD and signal lines have also moved back into positive alignment, and the bullish histogram has reappeared.

Can Cardano break through $0.40?
Cardano’s price action formed a bullish engulfing candle on the 4-hour chart, which resulted in a breakout above the 61.80% Fibonacci level. As the breakout gains momentum, Fibonacci levels suggest possible targets of $0.381 and $0.399, corresponding to the 78.60% and 100% levels respectively.

As momentum builds, Cardano’s price could revisit $0.40, with the next potential target being the 1.618 Fib level at $0.452. Conversely, the key support levels for a breakout are found at $0.363 and $0.356, which correspond to the 50% Fibonacci levels.

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