Category: altcoin

Polygon can hit $3.50 in Q4 as MATIC’s 20% weekly rally triggers bull flag setup

Polygon can hit $3.50 in Q4 as MATIC’s 20% weekly rally triggers bull flag setup

Polygon (MATIC) has the potential to reach $3.50 by the end of this year as it charts a pattern that’s starting to resemble a bull flag.In detail, bull flags are bullish continuation patterns that emerge when the price consolidates following a strong move higher. In doing so, the price tends to trend lower while leaving behind a sequence of higher lows and lower lows.A breakout occurs when the price closes above the flag’s upper trendline (or resistance). In other words, the price can rise by as much as the height of the previous uptrend, also known as a flagpole. It appears MATIC has been painting a similar pattern even since it established a record high of $2.89 on May 17, following a $2-long upside run (the flagpole).MATIC/USD weekly price chart featuring bull flag setup. Source: TradingViewAs a result, should MATIC’s price break above the flag’s resistance decisively, it will shift its upside target to about $2 above the breakout level. That would roughly put the Polygon token en route to $3.50.The pullback angleThe bullish setup appeared as MATIC surged by around 30% on Friday to reach a one-month high near $1.65.Nonetheless, the cryptocurrency experienced a slight correction near the said peak level, dropping by around 4% on profit-taking sentiment among daytraders. Moreover, since the correction occurred right around the bull flag resistance, it raised the possibility of extended selloffs ahead.Should a pullback happen, it will risk dropping MATIC to its first line of weekly support toward its 20-week exponential moving average (20-week EMA; the green wave) around $1.231. Meanwhile, further weakness could shift the downside target to the 50-week EMA (the velvet wave) around $0.868.Bulls have the upper handIn addition to the full flag, MATIC painted a cup-and-handle pattern that presented the possibility of the cryptocurrency hitting $1.80 soon.Twitterati MK2 Trading spotted the bullish reversal indicator first on the Polygon token’s daily price chart. It showed the price forming a rounding bottom (cup) following an upside move and then painting a descending channel range (handle).MATIC/USD daily price chart featuring cup and handle pattern. Source: TradingViewA subsequent breakout from the handle’s trading range would signal a bullish continuation. In doing so, the price would eye a run-up toward the level at a length equal to the cup’s depth. As a result, MK2 Trading expects MATIC at $1.80 in the coming sessions.Macro fundamentalsThe latest bout of buying in the Polygon market appeared after Upbit, one of the leading South Korean crypto exchanges by volume, added MATIC pairs to its trading platform. Additionally, the exchange also listed Solana (SOL) and NuCypher (NU) pairs.Solana was another standout performer on Friday, with its native token, SOL, surging by over 11.5%, while NuCypher’s NU rallied by more than 845% Friday after Upbit’s announcement.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Polkadot eyes breakout to $75 after DOT price rally sets up classic bullish reversal

Polkadot eyes breakout to $75 after DOT price rally sets up classic bullish reversal

Polkadot (DOT) chart technicals suggest it may rally to a new record high near $75 if DOT can manage to close above its $41-$43 range decisively.That’s according to a classic bullish reversal setup known as an Inverse Head and Shoulders (H&S) that forms when the price undergoes three selloffs during a period of market consolidation. Specifically, the pattern contains an initial selloff, followed by a short-term price rally and another—deeper—selloff. That leads to one more small correction to the upside, followed by another selloff that bottoms out near/at the lowest level of the first selloff.Inverse Head and Shoulders pattern illustration. Source: ThinkMarketsThe first and last selloffs represent “left” and “right” shoulders, respectively, while the second selloff represents the “head.” On the other hand, the level around which all the short-lived rallies top out represents the “neckline” of the head and shoulders pattern.Traditional analysts typically calculate the H&S upside target from the neckline resistance by measuring the maximum distance between it and the head formation.So it appears, Polkadot has been forming a similar bullish pattern on its weekly chart, as shown below.DOT/USD weekly price chart featuring inverse head and shoulders setup. Source: TradingView.comThe maximum distance between DOT’s neckline and the head’s bottom comes out to be nearly $31. Therefore, a successful bullish breakout above the neckline range of $41-$43 puts the next long-term target at approximately $75.Parachain Auctions coming in NovemberThe inverse H&S pattern emerged as DOT rallied by almost 30% this past week to reach a five-month high at around $44. At the core of its weekly uptrend was a price boom across the crypto market, as well as the news of Polkadot’s first Parachain Auctions going live on Nov 11.In detail, Polkadot’s Parachains are parallelized, application-specific chains — child ledgers tethered to a single parent ledger called Relay Chain. Due to their parallel nature, Parachains tend to process multiple transactions simultaneously and maintain and record their data on the main ledger by communicating with other chains.Related: Polkadot to debut parachain auctions after governance voteThat comes as a break from the method of queuing transactions and processing them sequentially.5 years after the vision of a heterogeneous multichain framework was first outlined in the Polkadot Whitepaper, parachains are now ready to launch on Polkadot. Motion 118, to schedule the first auctions, has passed council & now gone to public referendum.https://t.co/8pt3aT4vO3— Polkadot (@Polkadot) October 13, 2021DOT, which serves as a utility token for fees, governance, interoperability, and bonding inside the Polkadot ecosystem, rallied by more than 24% after the Parachain announcement.Next, Polkadot aims to introduce a cross-chain feature that would enable its relay chain to external blockchains (Bitcoin, Ethereum, etc.) via specialized smart contracts. Meanwhile, the project also plans to launch “in-built bridging modules” that would enhance the interoperability of external blockchains with Polkadot. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Binance Coin eyes $560 next after BNB price 'Cup and Handle' breakout

Binance Coin eyes $560 next after BNB price 'Cup and Handle' breakout

The ongoing price boom in the Binance Coin (BNB) market is painting a classic bullish chart pattern with an upside target of $560.Dubbed as Cup and Handle, the pattern appears when the price forms an advance that appears like a U-shaped trend (Cup). That follows up with a formation of a descending channel range (Handle). A breakout above the Handle range typically leads to an upside continuation, with a bullish target at length equal to the Cup’s size.So it appears, BNB has undergone a price trajectory that looks like the Cup and Handle pattern. Furthermore, the cryptocurrency’s latest rally, accompanied by an increase in trading volumes, took its prices above the Handle range—a breakout—that raised the possibilities of bullish continuation ahead.BNB/USD 4H price chart featuring Cup and Handle setup. Source: TradingView.comAs a result, should the BNB price rally sustain, it will eye a run-up towards the Cup and Handle breakout target near $560. Conversely, if the price falls below the Cup resistance (~$437), it would risk invalidating the entire bullish setup.BNB price fundamentalsThe latest BNB price rally appeared after Binance, via its blockchain project Binance Smart Chain (BSC), launched a $1 billion fund to accelerate adoption across the entire crypto industry. This earmarks $300 million for projects building decentralized applications atop BSC.Traders typically view incubation events backed by blockchain projects as bullish for their native assets. Such events prompt developers to build new projects on dedicated public/private ledgers, which boosts the demand for their in-house tokens.For example, in early October, Solana, a public base-layer blockchain protocol, announced over $5 million worth of rewards and seed funding for developers participating in its global hackathon called Ignition. The news helped to push the price of SOL, Solana’s native token, up by 35%, as Cointelegraph covered.BNB appeared to have gone through a similar bout of speculation.Santiment, a crypto data tracking service, also detected a rise in BNB accumulation across wallets that already holds millions of dollars worth of tokens. So-called Binance Coin whales bought about 412,000 BNB in the past two weeks, thus adding 8.7% more tokens to their existing holdings.Binance Coin whale holders data. Source: SantimentThe BNB accumulation among rich investors surged despite warning signs from regulators in some countries. Related: Globe-trotting Binance looks to Ireland for ‘centralized’ headquartersBinance also remains under investigation by several agencies in the U.S. that have prompted several hedge funds, including Tyr Capital and ARK36, to either stop or scale down trading on its crypto exchange.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ethereum risks drop below $3.2K as ETH price faces heavy resistance

Ethereum risks drop below $3.2K as ETH price faces heavy resistance

Ethereum’s native token Ether (ETH) is at risk of falling below $3,200 in the coming sessions as its rally comes face-to-face with a strong resistance zone.In detail, the price of Ether swelled by almost 22% on a month-to-date timeframe in the wake of a market-wide price rally. That pushed the second-largest cryptocurrency by market capitalization from under $3,000 to above $3,650 in the first eight days of October, triggering more bullish forecasts.”Six thousand dollars will happen fast; $10,000 is programmed,” noted Twitter-based technical chartist Crypto Cactus. David Gokhshtein, CEO of distributed data network PAC Protocol, predicted a $10,000 upside target for Ether, as well.Waiting for $ETH to cross $10,000 so the party can really get underway. Side note: The only thing I’m thinking about is, how will the #NFT market react?— David Gokhshtein (@davidgokhshtein) October 8, 2021But the price of Ether has the potential to ram into a confluence of three notable bearish indicators that could limit its upside moves and pare a portion of its recent gains.Two resistance zones and a rising wedgeThe three bearish indicators that could prompt Ether to undergo a bearish reversal are a rising wedge, a descending trendline resistance, and an interim resistance bar, as shown in the chart below.ETH/USD 4H price chart featuring bearish confluence. Source: TradingView.comA rising wedge surfaced as ETH rallied and left behind a sequence of higher highs and lower lows. Meanwhile, the cryptocurrency’s uptrend happened against decreasing volume, showing a lack of bullish conviction among traders. Additionally, the structure’s apex—the point at which its two trendlines converge—is around two historical resistance zones. The first one is an interim resistance bar, as shown in the chart above, that previously called out ETH’s top above $3,650. At the same time, the second resistance is a descending trendline, visible more clearly in the daily chart below at around $3,800.ETH/USD daily price chart showing the descending trendline resistance. Source: TradingView.comAs a result, the rising wedge’s apex and the two resistance trendlines pose bearish reversal risks to Ether. Should it happen, the Ethereum token will crash by as much as the maximum height between the wedge’s upper and lower trendlines. Related: 3 factors that can send Ethereum price to 100% gains in Q4That puts it en route to below $3,200, which served as an accumulation zone for Ethereum traders in the first half of September 2021.Activating inverse head and shoulder?A drop towards or below $3,200 does not necessarily push Ether into a full-fledged bearish cycle. Conversely, it could trigger a bullish inverse head and shoulder setup.ETH/USD 4H price chart featuring a potential inverse head and shoulders pattern. Source: TradingView.comIf the setup plays out as intended, traders’ accumulation of ETH tokens will increase near $3,200, causing a rebound toward the neckline area in the chart above. In doing so, the ETH price would place its inverse head and shoulder target at a length equal to the maximum distance between the pattern’s neckline and bottom.That would put Ether en route to new all-time highs of approximately $4,500.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Crypto Trader Predicts 200% Rally Incoming for This Altcoin, Says Ethereum Ready To Follow Bitcoin

Crypto Trader Predicts 200% Rally Incoming for This Altcoin, Says Ethereum Ready To Follow Bitcoin

A popular crypto trader is expecting one altcoin to rally 200% and thinks Ethereum (ETH) is set to rally following a bullish move by Bitcoin (BTC).
The widely followed trader known as Inmortal tells his 85,800 Twitter followers that the smart contract platform Cosmos (ATOM) looks ready to make a 200% run towards $100.
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Is Axie Infinity overheating? AXS price hits record high following 100% QTD rally

Is Axie Infinity overheating? AXS price hits record high following 100% QTD rally

AXS, the native token of Axie Infinity, a play-to-earn nonfungible token (NFT) game built atop the Ethereum blockchain, rallied more than 100% on a quarter-to-date (QTD) timeframe to refresh a new record high above $155. Nonetheless, the cryptocurrency now risks paring a portion of its recent gains as a key technical indicator, dubbed the relative strength index (RSI), flashes its overbought conditions. In doing so, it might correct below $90 — almost a 40% drop.The bearish outlook surfaces after studying the relationship between AXS’s price and its RSI readings. In detail, when the RSI rallies above 70, it mostly prompts AXS to either consolidate sideways or lower later. But in either case, the token ends up testing its 20-day exponential moving average (20-day EMA; the green wave in the chart below) as an interim support level.AXS/USD daily price chart featuring its response to RSI readings above 70. Source: TradingViewFor instance, RSI has closed above 70 three times since July 1, 2021, and each time prompted the price to hit its 20-day EMA within seven to 30 days. That made buying AXS against an overbought RSI reading a risky preposition for traders, increasing their probability of facing short-term losses.As a result, the Axie Infinity token could go through a similar bearish trajectory in the days/weeks ahead, with its next downside target sitting around $87. Nonetheless, if the price rallies further ahead, as happened after July’s overbought signal, AXS’s bearish target could move to or above $90.Is hodling a better strategy?The 20-day EMA served as a buy indicator for traders following the RSI-led corrections. In detail, traders decided to buy the dip in anticipation that AXS’s price would retest and close above its previous high levels.Therefore, it is visible that traders who did not sell their AXS holdings during the price corrections toward the 20-day EMA managed to earn decent paper profits — the Axie Infinity token has climbed more than 2,500% since July 1.AXS’s growing utility inside the Axie Infinity virtual world, called Lunacia, has emerged as one of the primary catalysts behind its demand among gamers and traders. In detail, players maneuver colorful creatures called Axies to earn two kinds of tokens. The first, known as Small Love Potions (SLP), is awarded for successful battles; it can be cashed out or be reused to breed new Axies. Meanwhile, the second token, AXS, can be earned by winning seasonal tournaments or selling Axies in Axie Infinity’s dedicated in-house marketplace.As of Monday, Axie Infinity’s active user count tallied to 1.85 million, up over 4,500% since April, with its total cumulative revenue climbing to $815 million in the same period, as per Token Terminal. That made Sky Marvis, the firm behind Axie Infinity, the fifth-most valuable video game company globally by market capitalization. Top gaming companies in the world. Source: MessariThe strong fundamentals have intensified traders’ confidence in AXS, which explains its ability to bounce back every time after undergoing a sharp correction toward its 20-day EMA.AXS staking service, DEX launchThe latest bout of buying in the Axie Infinity markets also surfaced due to a new feature that allows AXS holders to stake their tokens to earn yields. Since its launch on Thursday, the staking feature has attracted more than 12.44 million AXS tokens (~$1.88 billion at current rates).AXS staking dashboard. Source: Axie InfinityStaking effectively takes active token supply out of circulation, which, against a rising demand for the asset, tends to push its prices higher. Related: Massive airdrop and AXS staking catapult Axie Infinity to a new all-time highMeanwhile, Sky Mavis announced that it would launch a decentralized exchange on Ethereum-linked sidechain Ronin. In doing so, the company aims to ensure faster AXS and SLP liquidity to players during gameplay without needing to rely on cross-chain bridges to purchase or swap tokens.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Axie Infinity (AXS) gains over 45%, but 'death cross' fears persist

Axie Infinity (AXS) gains over 45%, but 'death cross' fears persist

Axie Infinity’s native cryptocurrency AXS bounced higher on Se as the market’s focus shifted on its listing across two major crypto trading platforms: Bitfinex and Bitstamp.The AXS/USD exchange rate surged 15.52%% to $69.86, negating all the losses that it incurred at the beginning of this week. The intraday rally came as a part of an overall bullish retracement that began Tuesday when AXS was changing hands for $48.05. On the whole, the Avalanche token rebounded by as much as 45.37%.Crypto assets recoverThis Monday, markets were on edge by looming economic trouble in the Chinese property market, surrounding massively indebted yet the largest builder of homes, Evergrande. Fearing a 2008-like housing bubble scenario, investors precautiously shifted their capital out of the stock market and sought haven in the U.S. dollar.Are Evergrande’s debts denominated in Crypto? pic.twitter.com/YAoqBVx2Rk— Michael Batnick (@michaelbatnick) September 21, 2021The crypto market ended up mirroring moves of the global stock markets, with top digital assets Bitcoin (BTC) and Ether (ETH) ending up near their multi-week lows. As a result, other top tokens also fell in tandem, with AXS diving from $63.99 on Monday to as low as $48.05 on Tuesday—a 24.55% price decline.However, entering the Wednesday and Thursday session, almost all the top crypto assets recovered in sync. So it appears AXS merely tailed the trend. Still, its apprehensively stronger fundamentals, especially the addition of its pairs on Bitfinex and Bitstamp, had it perform better than most of its top rivaling tokens.HUMAN Protocol, Axie Infinity and Polygon will be listed on Bitfinex!HMT (ERC-20), AXS (ERC-20) and MATIC (mainnet) deposits are now open. Trading for @human_protocol, @AxieInfinity and @0xPolygon on #Bitfinex will start from 21/09/21 at 9:00 AM UTC⬇️https://t.co/jawz5VuLq8 pic.twitter.com/Yk6LT1Ub6E— Bitfinex (@bitfinex) September 20, 2021

For instance, BTC/USD bounced over 3% in the past 24 hours, whereas AXS/USD’s profits, in the same timeframe, came out to be more than 8.5%.Technical setupThe latest bout of buying in the Axie Infinity markets has helped to evade potential death cross threatș—for now.Namely, the AXS/USD’s 20-day exponential moving average (20-day EMA) risks slipping below its 50-day exponential moving average (50-day EMA). As a result, analysts typically perceive a short-term MA closing below a long-term MA as a Sell indicator, dubbed the “death cross.”For instance, the chart below shows that the previous 20-50 EMA bearish crossover followed up with a 50%-plus price decline.AXS/USD daily price chart featuring death cross setup. Source: TradingView.comOffsetting the death cross setup is AXS/USD’s daily relative strength index (RSI), a price-momentum indicator that has just bounced off its nearly oversold level, signaling the pair’s intention to move higher in the coming sessions. Related: Altcoins see a 35% bounce after Bitcoin reclaims $43,000The upside analogy receives an additional boost from the psychological support level near $51.90. Traders have lately used the said price floor as their point of entry to Axie Infinity markets, as shown in the chart below.AXS/USD daily price chart featuring $51.90’s history as support and resistance level. Source: TradingView.comAs a result, slipping below $51.90 could trigger the death cross setup, with the next support target for bears appearing at $36.47, as per the Fibonacci retracement setup. On the other hand, holding above the said price floor could have bulls test $76.59 and $88.98 as their next upside targets.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

‘Crypto Innovation Hub’: Miami Officially Embraces the First-of-Its-Kind MiamiCoin

‘Crypto Innovation Hub’: Miami Officially Embraces the First-of-Its-Kind MiamiCoin

The City of Miami, Florida, has voted to accept millions of dollars generated by MiamiCoin (MIA), its very own digital asset.
First announced in June, Miami saw the launch of its decentralized altcoin in August by crypto development company CityCoins Inc. It took just 40 days for MIA, the project’s first-ever “City Coin,” to generate $4.3 million.
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Tezos risks correction below record high with XTZ rallying 250% since July

Tezos risks correction below record high with XTZ rallying 250% since July

A recent price boom in the Tezos (XTZ) market risks exhaustion as it triggers a classic bearish pattern.Dubbed as Ascending Broadening Wedge, the pattern develops when the price oscillates between two upward but diverging trendlines. According to its creator Thomas Bulkowski, these Wedges tell less about buying exhaustion and more about sellers’ ambition to take control, i.e., buyers tend to lose dominance every time the price touches the upper trendline.XTZ’s 250%-plus price rally from its July 2021 low of $2.08 has led to Ascending Broadening Wedge’s formation. On Monday, the cryptocurrency tested the structure’s upper trendline as resistance (around $7.5) to eye an extended upside move towards its previous record high of $8.76.XTZ/USD daily price chart featuring Ascending Broadening Wedge. Source: TradingView.comBut the price corrected, confirming strong selling sentiment near the Wedge resistance. It now risks enlarging its correction towards the lower Wedge trendline (near $5), based on similar pullback moves spotted since July 2021.As a general rule with Ascending Broadening Wedge patterns, the price should eventually break below the structure’s lower trendline and target th lowest point, i.e., around $2.38 in Tezos’s case.XTZ/USD’s wedge target. Source: TradingView.comCentral charts note that almost 80% of the Ascending Broadening Wedge exits are bearish. Meanwhile, the price falls towards the bearish target six out of ten times.Fundamentals disagreeDespite grappling with an eerie technical setup, ADA expects to retain its bullish bias based on Cardano’s proof-of-stake blockchain adoption.Recently, American songwriter, rapper, and singer Doja Cat launched her nonfungible token (NFT) collection on OneOf, a digital art collectible marketplace running atop the Tezos blockchain. Her announcement coincided with a 42.65% upside move for ADA/USD during the September 9-10 trading session.Doja Cat NFTs. Source: OneOfNFTs have emerged as one of this year’s most trafficked trades, with OneOf’s top rival OpenSea reporting about $3.4 billion worth of volume in August.Meanwhile, Ethereum hosts most NFT projects, but high transaction costs have become a point of concern. As a result, many new NFT projects have been choosing Ethereum’s cheaper alternatives. For example, Solana’s native asset SOL surged up to 825% from its July 20 low, primarily because of the success of Degenerate Ape Academy, an NFT project, followed by Sam Bankman-Fried’s crypto exchange FTX’s decision to integrate Solana on their NFT platform.A similar craze assisted in pushing the demand for XTZ tokens higher in the past seven [email protected] has done more for #Tezos than almost anyone this year.— Altcoin Daily (@AltcoinDailyio) September 9, 2021Related: Altcoin Roundup: High Ethereum fees kick-start a liquidity migration to layer-1 platformsLast month, Tezos also received a boost from Europe-based banks Crypto Finance Group, InCore Bank, and Inacta. The firms announced that they would use the Tezos’ DAR-1 token standard to issue their native tokens. Additionally, InCore revealed its plans to launch of institutional-grade storage, staking, and trading services XTZ, raising prospects that wealthy investors would want to invest in the Tezos token in the near future.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Sell the news? ADA price drops 10% following Cardano's long-awaited smart contracts rollout

Sell the news? ADA price drops 10% following Cardano's long-awaited smart contracts rollout

The price of Cardano (ADA) fell on Sept. 13 in line with the other top cryptocurrencies despite the completion of its hard fork upgrade dubbed “Alonzo,” which introduces smart contract functionality.The ADA/USD exchange rate dropped 10.67% to reach its intraday low of $2.3, partly due to profit-taking sentiment among traders following the pair’s 1,200%-plus price rally this year. Additionally, the intraday sell-off also surfaced in the period of an overall crypto market decline, with top tokens Bitcoin (BTC) and Ether (ETH) falling 4% and 6.97%, respectively.Top 10 cryptocurrency tokens and their performance in the last 24 hours. Source: MessariCardano’s drop appeared when its core foundation rolled out a long-awaited smart contracts feature on its public blockchain for the first time. The launch expects to tap the booming decentralized finance (DeFi) and nonfungible token (NFT) sector as they grapple with slower and costlier transaction fees on the leading smart contracts platform, Ethereum.As a result, anticipations for an extended upside boom in the ADA markets were high, with the Value Trend, a financial analyst at Seeking Alpha, expecting the Cardano native token to hit $10 should it flip Ethereum to become the leading smart contracts platform.Overall, the belief helped ADA/USD deliver strong profits in the days approaching the Alonzo upgrade. On July 20, the pair was trading for as low as $1. Later, on Sept. 2, its value has risen to a record high of $3.16, a 200% rebound.Bullish continuation signals persistBullish assets tend to consolidate sideways or lower following a strong move upside, majorly as some traders decide to secure their profits. At the same time, investors with a long-term bullish outlook buy the asset from weak hands to build long-term investment strategies.The Cardano chart below hints at undergoing a similar consolidation phase after delivering a strong 200%-plus bull run. As a result, the probability of the ADA/USD exchange rate continuing its uptrend remains high.ADA/USD daily price chart featuring Bull Flag formation. Source: TradingView.comThe rectangle pattern appears like a Bull Flag. And, as a general rule, the profit target for bulls in a Bull Flag scenario is the same as the length of the previous uptrend. ADA/USD daily price chart featuring Bull Flag target. Source: TradingView.comA break above the upper Bull Flag trendline (at $2.93) could put ADA/USD en route toward $4.5.Additionally, the Cardano token would need to maintain its foothold above its 50-day exponential moving average (50-day EMA; the velvet wave) near $2.27 to keep its interim bullish bias intact. A drop below the Bull Flag support and 50-day EMA floor would risk sending ADA to $1.92, its support line from mid-August.Related: Institutional exposure to altcoin products retests all-time highAnalysts shared deeper price targets, with a pseudonymous Twitterati spotting a “Double Bottom” scenario, adding that traders are selling the news.#Cardano smart contract upgrade so far going as I have predicted: Sell the news. The price also formed a double top and now forming a lower low. If $2.25 is breached then down we go even more.$1.20 soon? pic.twitter.com/riFirqmCgz— Rautakansleri (@rautakansleri_) September 13, 2021Cerbul, another market analyst, said ADA’s ongoing plunge was not due to the “sell the news” sentiment, adding that more capital would flow into the Cardano ecosystem from the DeFi sector.”Accumulate,” he said.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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