Here’s Why ADA Could Replicate Ethereum’s 2017 bullish break-out 

ADA reacts to the upside after the latest network update. It recently crossed the hard to break $1 barrier to $1,191 but saw a rebound. The pattern could continue which could mean a very bullish momentum for the coin.

ADA
Cardano (ADA) has bounced back to $1.09 on the daily chart | source: ADAUSD on TradingViewcom

ADA’s Up and Downs

The seventh largest cryptocurrency is trading at $1.09 at the time of writing. A bounce from the close to $1.2 mark. A pseudonymous trader expects a moderate bearish continuation over the weekend, followed by a bullish recovery. they pointed The resistance levels for Ada are $1,150, $1,200 and $1,250, and the support levels of $1,100, $1,050 and $1,000.

source: ADAUSD on TradingView.com

“ADA finally broke the $1 barrier and broke above $1,191 after a four-day parabolic rally. However, the cryptocurrency rebounded to $1,100 support area The bulls ran out of steam near the $1,200 resistance.”

The trader noticed that the ADA placed the 100-day exponential moving average (EMA) below it.

“As we head into the weekend, I’m expecting a moderate bearish Continuation towards the $1.050 support. After that, I expect to see a rising to the $1,200-$1,250 range.”

Furthermore, a currency’s RSI can signal an oversold market, which could translate into a pullback or even an uptrend similar to previous bullish movement scenarios:

The last 3 times the ADA reached 70 Stoch RSI fell back on daily chart – as today – it exploded to the upside in the days after that, as noted by a trader on TradingView.

The outbreak has yet to come?

Despite the bounce, the Ethereum reversal pattern in 2017 could continue, implying bullish momentum for ADA. note the comparison By pseudonym dealer below:

If the coin sees a rebound, which is to be expected if Bitcoin breaks through the current resistance level, the ADA could follow Ethereum’s previous moves into a very bullish trend.

Earlier, the trader with a pseudonym who showed the similarity was looking for a 1D candle to close above the nearby $1.2 level and ADA moved higher, which did not happen due to the mentioned pullback. However, in their opinion, it actually looked “as if the ADA is replicating Ethereum (ETHUSD) rising In early January 2017.”

“See how the price action leading up to this since March 2016 is very similar to the ADA price action since May 2021. Same bearish channel, followed by a higher rally, a test near support, and lower highs start. RSI Fractals are the same.

Another trader believes that the ADA is in a deliberate move that is approaching its target. “There we will have some trading range and a potential second leg… Watch closely,” they added.

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