This pattern promises an ADA price of $2.60 or more
Cardano price forecast 2021: This pattern promises an ADA price of $2.60 or more
In our Cardano price forecast 2021 we talk about a chart pattern that has formed in ADA against the US dollar over the last 3 years. The peculiarity of this is that it is expected to break out in the Bitcoin Investor next few weeks, giving us a taste of where the next upward rally could take the Cardano price.
Will the ADA price double before the end of the year?
A question that certainly demands an answer. In this Cardano price forecast, we therefore provide you with a concrete target for the year 2021 and tell you what to watch out for in the coming weeks and months.
This gigantic chart pattern could boost the Cardano share price in 2021
Cardano (ADA) has already put in an incredible performance this year. From the beginning of 2021 to the end of February, the Cardano share price rose by an almost unbelievable 900%. But as if that were not enough, a continuation of this success story already appears to be on the chart.
What is special here is that this is a chart pattern that has been forming for over 3 years. Such a long duration is highly unusual for any kind of chart pattern. At the same time, the significance of the pattern for the Cardano price is significant, especially because of this long duration.
The above chart shows that the Cardano price has formed a giant cup with handle formation over the last 3 years. Currently, ADA is in the handle formation phase, with the price range between $0.98 and $1.05 already emerging as an important support zone.
There are also 2 indicators that suggest the breakout will be followed by a significant price rally for ADA. One is the immense height of the formation and the other is the fact that the right edge of the cup is well above the left edge. This is special in that formations that exhibit this characteristic are said to perform particularly well.
ADA’s coming price rally and a price forecast of $2.60 or more
The great thing about chart patterns is that they usually allow us to calculate a specific price target. In general, there is more talk of a so-called minimum price target, which in theory is reached or even exceeded in the case of a successful formation. In the specific case of our Cardano price forecast, we can therefore determine an exact price target for ADA with the help of the cup with handle formation.
According to the textbook, the minimum price target is calculated by measuring the distance between the bottom of the cup and the height of the right edge of the cup. This value is then projected upwards to the breakout point. The breakout point marks the moment when the Cardano price again exceeds the height of the right edge of the cup. Since such a breakout has not yet occurred at the time of writing, we have given an example in the figure above of what the further course of the price could look like.