Cardano price has been in an upward momentum in the past 24 hours. ADA price has jumped by more than 4% in the past 24 hours bringing its market cap to more than $10.7 billion. This makes it the 6th biggest digital currency in the world.
Why Cardano price rose: There are two main reasons why the ADA price has jumped in the past few hours. First, it has gained a lot of interest among traders in chat platforms like Discord and Reddit. Together with Dogecoin, the two have become among the most popular assets by traders. The second reason is that, in general, other cryptocurrency prices have been on a strong uptrend in the past 24 hours. Bitcoin, Ethereum, Ripple, Dogecoin, and Stellar have been rallying.
The third reason is technical. Hear me out.
ADA price technical outlook
The daily chart below shows that Stellar has been on a steady uptrend in the past few months. The currency reached an all-time high of $0.4011 on January 16th this year. Since then, it has been in a consolidation mode, whose support is at $0.2786.
This has not been the usual consolidation. It has been, in fact, a bullish pennant pattern whose flag post started at about $0.1280. The triangle parts of the pennant are shown in red.
In technical analysis, a bullish pennant or flag is usually a sign of continuation. It happens when bulls start questioning the strength of the trend. Ultimately, it tends to break-out and continue with the trend. As I noted earlier, before its current pump, Dogecoin was also forming a pennant pattern.
Therefore, while ADA price has moved above the upper side of the pennant, the strength of the rally will be confirmed once it moves above the ATH at $0.4011.
Cardano price chart