Eighth-largest cryptocurrency by market capitalization, Cardano (ADA), resumed its upward trajectory on Thursday. On Tuesday, the cryptocurrency had a sharp decline, plunging as low as $0.56.
Amidst continuous rumours that the U.S. Securities and Exchange Commission may be nearing approval for an exchange-traded fund that makes direct investments in Bitcoin, the cryptocurrency market bounced back.
According to Santiment, traders may have become ecstatic when MicroStrategy just purchased $615 million worth of Bitcoin. Santiment notes that the optimistic market action may have been influenced by MicroStrategy’s recent acquisitions and positive press surrounding the firm.
Cardano has outperformed all cryptocurrencies except BNB among the top 10 by market value, jumping 7.77% in the previous day to trade at $0.65 at press time. Cardano has continued to benefit from the market’s bullish rise.
Cardano continued to rally after Tuesday’s loss, hitting intraday highs of $0.678 in today’s trade before slightly declining.
Room to climb further?
Nevertheless, based on a bullish trend on Cardano’s four-hour chart, cryptocurrency analyst Ali thinks there may still be opportunity for growth.
https://x.com/ali_charts/status/1740004785217282178?s=20
On its four-hour chart, Cardano is forming a symmetrical triangle, according to Ali. A period of consolidation preceding a price breakthrough or collapse is indicated by a symmetrical triangle chart pattern.
Ali believes that if there is a breakout, this might pave the way for ADA to rise towards $0.78. Based on current pricing, this might result in a 20% gain if it materialises.
This story may be supported by positive fundamentals because there is a lot to be excited about with the Cardano ecosystem in 2024. Cardano’s first significant technological milestone, the Chang hard fork, is anticipated in 2024.
