The Cardano price is close to a bullish breakout as Bitcoin remains solidly above $34,00. ADA is trading at $1.4328, which is more than 42% above the lowest level in June. It has a market capitalization of more than $45 billion and is the fifth-biggest cryptocurrency in the world.
Catalysts for Cardano. There are three major catalysts that will likely push the ADA price higher. First, there is the fact that Bitcoin has remained above $34,000 in the past few days. It is trading at $34,792, bringing its total market capitalization to more than $652 million.
Therefore, there is a sentiment that cryptocurrency prices may have bottomed and that the path of least resistance will be higher. In most cases, altcoins like Cardano and Polkadot tends to move in the same direction as Bitcoin.
Second, Cardano price may be about to break out because of Ethereum. Ether is holding steady close to $2,400 as investors wait for the upcoming London hard fork. As a result, there is a possibility that the coin will keep rising ahead of this event. If this is the case, there is a possibility that Cardano and other altcoins will follow Ether.
Third, ADA price is rising as investors focus on activities in the Treasuries market. The 10-year Treasury yield has dropped to the lowest level in more than 4 months as investors downplay the future actions by the Federal Reserve. Risky assets like cryptocurrencies tend to do well when hopes of prolonged low-interest rates slide.
The four-hour chart shows that the ADA price has been in a tight range recently. Along the way, the coin has formed an ascending channel that is shown in green. It has also formed what looks like a bullish inverted head and shoulders pattern. Further, the price is slightly above the 50-day volume-weighted moving average (VWMA).
Therefore, in my view, I suspect that Cardano will soon breakout higher as bulls target the next key resistance at $1.50, which is about 6% above the current price. Any move above this price will see the coin continue rising to the next level at $2.00. On the flip side, a drop below $1.3780 will invalidate this prediction.
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