Cardano has formed higher lows and found resistance around the 0.050 mark to create an ascending triangle pattern. Price recently bounced off the bottom and looks prime for a test of resistance.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, resistance might be more likely to break than to hold. In that case, Cardano could climb by the same height as the chart formation, which spans 0.0250 to 0.050. In addition, the moving averages line up with the triangle bottom to add to its strength as support in the event of another dip.
A break below support could similarly be followed by a drop that’s the same height as the triangle. RSI is hovering around the overbought levels and may be ready to head south soon, indicating that selling pressure could pick up. Stochastic, on the other hand, seems to be pointing back up to reflect a return in bullish momentum.
Cardano might be drawing upside momentum from the anticipation for its upgrade. Currently, the…