After breaking higher to a new all-time high of $2.0227, the Cardano price is has stalled, but the technicals suggest more gains may lie ahead.
Cardano, which trades under the ticker ADA outperformed much of the cryptocurrency market yesterday. As many of the top names followed Bitcoin lower, the Cardano price bucked the trend, setting a new record in the process.
Quite often, when Bitcoin is sold, altcoins tend to come under pressure as a result. The coins price action served as a reminder that this is not always the case.
As the broader market negatively reacted to Elon Musks Bitcoin tweet, ADA initially followed suit and declined to its $1.5000 intraday low. Buyers were quick to snap up the lower valuation, and subsequently, the price rose 40% from its low.
The 4-hour chart shows that the rally gained traction once the price cleared a descending trendline at $1.8100. The move came on a considerable increase in trading volume, which positively reinforces the bullish outlook.
The Cardano price rally has paused a little, and today’s low of $1.8137 retested the breakout level.
Often when a market clears an important level, it will revisit this marker before resuming the move. Today’s dip in price may offer bullish traders a great set-up to establish a long position.
If the Cardano price can hold the trend, it will likely attempt a run at the ATH. A break below the trend would not only cancel the immediate bullish view but ultimately could lead to a test of yesterday’s low.
Therefore stops should be placed below the trends current level of $1.7900.