Cardano News: Can ADA Rise to $5? This Bullish Pattern Suggests It Might
Key Points:
Cardano is the 19th largest network in terms of DeFi TVL despite being the 9th most valuable crypto.
ADA could rise to $5 if a bull flag pattern in the weekly chart is confirmed.
Lower time frames show bullish structures as well as the crypto market continues to recover.
Most digital assets are up during the Asian session as they rallied during the weekend just days after the Federal Reserve decided to maintain interest rates unchanged as expected.
ADA has earned a meager 1.1% in the past week while Solana (SOL) and Ethereum (ETH) rose by 12.3% and 9% during this same period.
The Cardano network has lagged behind its peers in terms of adoption and currently ranks 19th by the total valued locked (TVL) within its decentralized finance (DeFi) ecosystem.
The Cardano network has lagged behind its peers in terms of adoption and currently ranks 19th by the total valued locked (TVL) within its decentralized finance (DeFi) ecosystem.
The network has struggled to attract developers as it has missed significant trends that have propelled most smart contract networks. Cardano does not support traditional stablecoins like USDT and USDC while it also missed the meme coin boat as no improvements were made to the network to support this kind of digital asset.
Bull Flag Breakout Could Push ADA to $5
However, ADA’s weekly chart suggests that the rally that started back in November could continue as a bullish pattern has popped up in this higher time frame.
A bullish flag has emerged as the price of ADA has been consolidating after surging to $1.3 back in December. Bullish flags are continuation patterns that indicate a brief pause in the rally as late buyers take advantage of the temporary retreat to further propel the price of the asset.
Using the flag’s pole size as a reference, we can project that the price of ADA could rise to $5 if it breaks above the $1.3 level in the next few weeks.
