Cardano price rewards the patient investors in 2021
Over the last four days, Cardano price has rallied 47%, based on the current price. It is the largest 4-day gain since February 10. The rally was kickstarted by a powerful, bullish engulfing day covering the previous six trading days, and it closed with a 23% gain.
Underpinning the rally is the attention being directed towards ADA’s less intensive mining and transaction network. A huge benefit in light of Elon Musk’s comments earlier in the week about the notable environmental impact of Bitcoin mining.
In an FXStreet article published on May 13, it was projected that Cardano price would extend the breakout from the cup-with-handle base to the measured move target of $2.40, generating a 65% gain from the handle breakout at $1.46. Yesterday, ADA reached the target.
Cardano price momentum is clearly in favor of higher prices. The path higher may be a blowoff move from the current price taking ADA through $3.00 and on to the 261.8% Fibonacci extension of the April decline at $3.93. Alternatively, Cardano price could slide in a mild correction, enabling it to digest recent gains and release the mildly overbought condition on the daily Relative Strength Index (RSI).
With the cryptocurrency market showing volatility over the last few days, investors need to be prepared for a bearish scenario. A bearish reversal today followed by a decline below $1.89 could signal that ADA is preparing for a deeper correction or that the rally has reached its pinnacle.