NOIDA (CoinChapter.com) — Cardano (ADA) price clawed back $0.50 on February 8, outperforming its rivals, with ADA price likely reacting to broader market price movements.
Buyers began entering the market after the price of Bitcoin topped $45,000 for the first time in nearly a month. The rest of the market also performed strongly, as altcoins often mirror the price movements of Bitcoin.
The blockchain has an update ready called CIP-169, which introduces a minimum viable on-chain governance mode to Cardano. Developers say that this upgrade will make the blockchain “”A fully self-governing ecosystem.“
Additionally, transaction volume and wallet addresses on the Cardano blockchain are increasing, suggesting that interest in blockchain may be increasing.
Aside from these updates, ADA doesn’t have any clear bullish clues to highlight its upside, suggesting that broader market conditions may be the reason Cardano’s price is up today.
ADA price forms a bullish pattern
Meanwhile, ADA price formed a bullish technical pattern called ”.bull pennant,’ giving Cardano tokens another reason to bounce on February 8.
A bull pennant is a continuation pattern that appears when an investment undergoes a price rally and then consolidates between two converging trend lines. Ultimately, after a period of consolidation, a large breakout in the direction of the initial move occurs.
However, it is important to note the volume. Likewise, volume should be low during a sideways move, but increased during a breakout move. Otherwise, it is more likely that the price will revert to a sideways pattern.
If ADA price breaks out of an upward trend, you could theoretically target a price level that is at least 154% higher than the current price. That means the target price is $1.345.
Cardano price surpassed $0.53 for the first time in February.
The recent rebound in the price of ADA has pushed the Cardano token above the $0.53 price level, breaking the confluence of the 20-day EMA (red wave) and 50-day EMA (purple wave) resistance. If the bull market continues, ADA price is likely to rebound to resistance near $0.59.
A break above the immediate resistance could strengthen ADA’s bullish rally and push the Cardano token’s price up to resistance near $0.65 before the correction narrows.
On the other hand, if the bears start booking profits after the recent price rally, ADA price may fall towards the 100-day EMA (blue wave) support near $0.48. If immediate support fails, the bulls will defend support near $0.393.
ADA’s RSI remained neutral at 55.41 on the daily chart.