Cardano Bullish Flag Points to Potential Rally Toward $1.394
With a bullish flag in play, Cardano (ADA) fate is tied to broader market recovery, which suggests an extended rally.As the Crypto Fear and Greed Index moves back into the Greed Zone, altcoins are gaining bullish momentum. Among the top-performing altcoins, Cardano has surged by 24% over the past week, with a market cap of $37.86 billion.The ADA price trend continues to trade above the $1 mark, with a bullish flag formation in play.ADA Price AnalysisOn the 4-hour chart, Cardano's price trend shows a breakout from a falling channel, gaining momentum. The bullish surge has reclaimed the psychological $1 mark and is shifting laterally.This lateral shift is due to the significant overhead resistance at the $1.117 level, which keeps the consolidation range intact and limits bullish growth.Cardano Price ChartCurrently, the Cardano price trend suggests a potential bullish flag, as the consolidation between $1 and $1.117 follows the breakout rally. The bullish momentum has led to a golden crossover between the 50 and 200 EMA lines, along with a positive crossover between the 100 and 200 EMA lines.However, the 4-hour RSI indicates underlying weakness. The relative strength has dropped significantly from the overbought zone to the 61.85 level during the consolidation phase.Cardano Price TargetsAs the broader market recovers and Bitcoin prepares to reclaim the $100K mark, improving sentiment suggests further upside potential for altcoins like Cardano.Additionally, the bullish flag pattern typically signals the continuation of an uptrend. Based on Fibonacci levels, a bullish breakout at the 23.60% Fibonacci level ($1.125) will likely push the price toward the 50% Fibonacci level at $1.212.This is close to the $1.239 supply level, which serves as the immediate significant resistance. The Fibonacci levels also suggest a potential price target of $1.394.However, the declining RSI points to the possibility of a retest of the 20 EMA near the $1 psychological level.
Text source: The Crypto Basic
