- ADA’s triangle breakout slows down at $0.7 but the DMI and the RSI affirm the recovery potential to $1.
- Litecoin faces immense seller congestion at $68 reinforced by a descending trend line.
The bulls’ influence in the market has become evident, especially for a few cryptocurrencies like Cardano, Waves, Axie Infinity and Near Protocol. Litecoin seemed to be playing catch up, though the recovery from support at $54 to the prevailing level of $68 was quite substantial.
Bitcoin, on the other hand, was struggling to hold above $31,000 and at the same time, dealing with the hurdle at $32,000. Altcoins seemed to be recovering a lot faster than the largest cryptocurrency at the moment.
ADA was looking forward to stepping above $0.7 in a bid to push to $1, as analyzed on Monday. Meanwhile, LTC needed to secure higher support and gather enough strength to shred the barriers at $70 and $74, respectively.
Is Cardano’s Breakout To $1 Unstoppable?
Printed on the four-hour chart was a crucial symmetrical triangle pattern that optimized ADA for a breakout. Following the break above the upper trend line, trading volume increased, thus propping ADA for a 44% bullish escape to $0.72.
The upswing was fast and above all, sustainable over the last couple of days. At the time of writing, ADA exchanged hands at $0.65, while bulls worked hard to flip the barrier at $0.7 into immediate support.
Various technical indicators currently affirm the sanguine outlook to $1, starting with the Relative Strength Index (RSI). The RSI divergence above the moving average continued to widen since May 28. For this reason, ADA is said to be in an optimized state to rally beyond the target of $0.72 and close the gap to $1.
ADA/USD Daily Chart
At the same time, the Directional Movement Index (RSI) also flashed a buy signal when the –DI crossed above the +DI. That is to say that the odds favor the bulls, at least for now.
Litecoin At A Make-Or-Break Juncture
Litecoin’s price is at a tipping point with two conflicting outcomes. A break above the descending trendline resistance on the six-hour chart might settle LTC above $70 and possibly close the gap to $74. On the other side of the fence, trading below the 50 Simple Moving Average (SMA) will likely open the can of worms and stir instability in the market. Hence, LTC’s correction to $65 and $60 levels cannot be ruled out.
Bullish traders are likely to be looking at the MACD’s vivid buy signal. However, the uptrend might delay until the momentum indicator crosses into the positive region. The gap made by the 12 EMA above the 26 EMA would help ascertain the viability of the impeding run-up.
Another buy signal emanated from the Parabolic SAR (Stop and Reverse) indicator, which flipped below ADA on the weekend. This revealed that attention was shifting from the bears to the bulls with more upside action anticipated.