Bullish cup-and-handle pattern sets Cardano (ADA) price up for a new ATH

Bullish cup-and-handle pattern sets Cardano (ADA) price up for a new ATH

Smart contracts have been a revolutionary force in the blockchain industry because they have enabled the creation of decentralized finance protocols, nonfungible tokens and a new form of carrying out transactions without the need for an intermediary.

Cardano is one of the many projects that has been gaining momentum throughout 2021 and now that the project’s long-awaited smart contract capabilities are on the verge of becoming reality, the token is on the precipice of setting a new all-time high.

Data from Cointelegraph Markets Pro and TradingView shows that after bottoming at a low of $1.02 on July 20, the price of Cardano (ADA) has surged 139% to a multi-week high at $2.45.

Here’s a look at what some analysts and traders are saying about the recent price action for ADA and what token holders may want to keep an eye on in the short term.

A bullish upturn in the 50MA

The rapidly rising price of ADA has been hard for most traders to ignore, especially since multiple technical indicators have now flipped bullish.

One such indicator is the 50-day moving average (50MA), which is now pointing up after being on a downslope for roughly two months as highlighted in the following chart posted by pseudonymous Twitter user Pharmlord.

As seen in the chart above, once crossing above the 50-MA, ADA’s price doubled and is now on the verge of hitting a new all-time high at $2.46.

Flipping $2.30 to support is key

Insight into the important levels that ADA bulls need to keep an eye on was provided by Rekt Capital, a pseudonymous Twitter analyst, who pinpointed the importance of the $2.30 level.

The $ADA dip gets bought aggressively and the rally continues

ADA is getting incredibly close to revisiting its final major resistance of $2.30 (black)

Also very close to revisiting All Time Highs#ADA #Cardano https://t.co/FX0FS7Aekt pic.twitter.com/jDiXaLqcfF — Rekt Capital (@rektcapital) August 19, 2021

ADA has already managed to convincingly surpass a lower resistance zone shown in red on the chart above and is now attempting to break the May 16 all-time high at $2.46.

According to Rekt Capital:

“The only major resistance left before a new All-Time High is the black level ahead (~$2.30).”

Related: ADA hits $2 for the first time since May ahead of Cardano smart contract announcement

A cup-and-handle breakout will confirm the ATH

According to Twitter user Fidzcrypto, ADA is showing a distinct cup-and-handle formation on the daily timeframe.

Investopedia cites the cup-and-handle pattern as a technical indicator that resembles a cup with a handle, where the cup is in the shape of a “u” and the handle has a slight downward drift.

The cup portion of the pattern can be seen on the chart between May 14 and Monday, Aug. 16, while the handle is seen in the price dip and recovery from Monday to Wednesday.

According to Investopedia:

“The cup and handle is considered a bullish signal, with the right-hand side of the pattern typically experiencing lower trading volume. The pattern’s formation may be as short as seven weeks or as long as 65 weeks.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Pirate Chain Analysis: ARRR Coin Continues The Cup And Handle Formation

ARRR coin forming a cup and handle pattern in the daily chart.

The ARRR/BTC pair was trading at 0.00008167 BTC with a gain of 2.08%

The 24hr trading volume in the ARRR coin is $1.61 Million

The ARRR price action forms the Cup and a handle pattern in the daily time frame. The bullish chart pattern could bring an excellent opportunity for ARRR traders with bullish sentiments, provided the price gives a bullish breakout above the $4 resistance level. Currently, the price shows the $3.94 level as the support of the handle structure of this pattern by forming a second Doji candlestick. The current price of the ARRR coin is $3.94, with an intraday gain of 2.23%

The RSI (BULLISH) value is at 52, indicating a rising underlying bullish sentiment in the coin. In addition, the RSI line shows regaining growth in its value as the price comes to fruition of the pattern.

ARRR Coin Crypto Chart In The 4hr Time Frame

The ARRR coin showed a ‘V’ shaped recovery in the 4hr time frame after the price took support from the 200-day EMA support. Currently, the price is at the doorstep of the $3.5 resistance, and a breakout from this level should confirm the price going for the completion of the pattern.

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As per the crucial EMA’s, the ARRR coin is in a bullish trendline as the price is trading above all the crucial EMA’s in the daily time frame.

The MACD indicator shows a bullish crossover of the MACD and the signal line, projecting a buy signal for the ARRR trader.

Conclusion: From the technical perspective, the overall market sentiment of the ARRR coin is bullish, and both the price action and indicators show a great bullish outlook for this coin. Thus, the ARRR can grab an excellent long opportunity once the price provides a decisive breakout from the $4 resistance level.

Support– $3.1

Resistance– $3.5, $4

Apple: Cup And Handle Pattern Comes To Fruition

Apple (NASDAQ: ) led the market higher today after a tumultuous open with many stocks opening up in the red only to finish deep in the green. The continues to power higher amidst strong earnings with the ETF notching another new all time high today with 73.94M shares changing hands on Monday as cautious sellers rebalance portfolios. Investors aggressively bought the dip with the widely followed benchmark SPX making new all time highs as the US stock market continues to make records.

The cup and handle pattern mentioned in the Day Traders Journal back in April outlined a potential cup and handle pattern that became especially true on the breakout above the neckline,

Here’s the visual:

The measured move of the cup and handle pattern for AAPL suggests a move up to $161.Now with the widely followed benchmark breaking out to new highs today the next breakout level to watch is for a decisive break (and close) above $449.which would increase the likelihood of a Fibonacci extension confluence of $464 or +4.1% higher. Investors using a typical Stop loss of 442.4 would risk a profit/loss ratio of 4:1 should price extend the gains to that level, minor resistance is also near 447.3 or 0.51% higher with Fibonacci support confluence near 433.7 or -2.6% lower.The S&P 500 has been traveling in an ascending channel since the beginning of the year and now is beginning to develop bearish divergences between relative strength, price and the PMO. Any test of 449 level however would likely alleviate the divergence and negate the ascending wedge pattern that has been developing during the low volume of this past summer