Cardano has just completed a bullish technical formation. This positive development could see the ADA price target $2.0000 sometime soon.
The 2-hour chart shows that the price is currently attempting to clear resistance between $1.6000 and $1.6500.
On the 24th of May, the ADA price broker higher through a trend line at $1.4500. The trend had been in place from the May $2.4650 all-time high.
The resulting clearance saw the price extend higher to $1.6500.
The price then reversed back to the $1.3400 break level and held. To me, this is very positive for the price outlook.
The level that was once capping gains has now proved to support the ADA price.
We can also see that the MACD (Moving Average Convergence Divergence) Indicator is showing bullish momentum. Another positive indication that the path of least resistance is higher.
Cardano Price Target
If the current candle can close above $1.6000, the momentum should take the price into the $1.8000 -$2.0000 range. There it is likely to run into some profit-taking.
The $1.8000 price was a previous ATH from early May. This had initially been a difficult barrier for the ADA price to cross. However, once it did, $1.8000 became a strong level of support, and the foundation for the next leg higher to $2.0000.
The relief rally from the May 19th lows reversed sharply as the price approached $2.0000. This should be seen as a major resistance level. Therefore, if buying momentum can clear this threshold, a new record may be on the horizon.
Nonetheless, there is a lot of work to be done before ADA can set a new record. Should the price fails to break to the upside, we would once again look to the descending trend line at $1.4040 as support.
If this fails to hold on to the second retest, it would likely lead to a further decline. In this instance, I would cancel the immediate bullish outlook.