Can Cardano Price Activity Push ADAUSD Above the Rectangle?
2019 was not a very good year for Ethereum, and Vitalik Buterin recently had to push back on accusations that the Ethereum 2.0 testnet has features which bear a close resemblance to those of Cardano’s latest network! However, Buterin has likened the so-called copied models to the four wheels of a car, which all vehicles must have no matter the design and model.
Anyway, Cardano seems to have been getting some good momentum going. CEO Hanslock was able to secure some deals from the World Economic Forum in Davos, signing partnerships with an EU consortium among others. The project is intent on ramping up advertising and speed of development to make 2020 a big year. Are investors impressed with these developments?
Cardano price action on ADAUSD seems to be on its way to a bullish breakout from the bullish pennant pattern on the daily chart. However, this price move needs to overcome the resistance posed by the upper border of the rectangle pattern, located at 0.046139. Above this area, another resistance level looms at 0.047280.
We can consider the price range that extends from 0.046139 to 0.047280 as a resistance zone. A break of this resistance by at least a 3% penetration or two successive daily candle closing penetrations are required to confirm a clear path towards 0.049695. I also see further resistance at 0.055225, where the previous highs of 11 Aug and 19 Sep 2019 exist. A move to that price level could see the completion of the measured from the bullish pennant formation.
On the flip side, 0,041991 and 0.034881 could be the closest downside targets for ADAUSD if the price momentum fails to carry the pair above the resistance zone.