Cardano just had a big price breakout after consolidating in a bull pennant. Crypto expert Ali pointed this out on X, saying, “Cardano $ADA is breaking out of a bull pennant, targeting $3!” When you look at the technical signals, it looks like ADA’s upward movement might keep going.

Looking at the chart, ADA’s price started climbing hard in early November. Then in December, the price moved sideways in a triangle pattern—pretty normal after a strong run up. 

This pattern usually means the uptrend will continue. The breakout above the upper trendline of this pattern suggests the potential for significant price appreciation.

The ADA chart integrates Fibonacci retracement and extension levels to highlight potential support and resistance zones. During consolidation, ADA’s price found support near the 0.618 Fibonacci retracement level, around $0.74. 

Currently, immediate support lies near $0.85, while $1.15 serves as immediate resistance as the price attempts to hold above the breakout zone.

Price targets following the breakout align with Fibonacci extension levels. The 1.272 extension at $1.92 represents an intermediate target, while the 1.618 extension at $2.79 and the 1.786 extension at $3.49 provide more ambitious projections. The psychological milestone of $3 remains a focal point for traders, reflecting optimism surrounding ADA’s potential rally.

These bull pennants show up after a big price jump when the price moves sideways for a bit in a triangle shape. Think of it like catching your breath after running up stairs. This structure typically resolves in the direction of the preceding trend.

To figure out where the price might go next, traders look at how big that first price jump was. They measure it and add that same distance starting from where the price breaks out of the triangle.

Looking at ADA right now, the price broke through the top of the triangle. Based on measuring that first jump, it looks like it could hit $3. This aligns with the 1.618 Fibonacci extension, a level commonly observed in crypto price action.

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The bullish sentiment surrounding Cardano has grown following this breakout. However, analysts caution traders to monitor for false breakouts or any retracements back into the pennant structure. Volume confirmation remains critical to validate the breakout’s strength.

Cardano’s price performance in the coming days will likely hinge on its ability to sustain momentum above key resistance levels. While optimism persists, traders are advised to remain attentive to market conditions and ongoing price action.

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The post Here’s Why Cardano (ADA) Price Could Reach $3 After Its Recent Breakout—Analyst appeared first on CaptainAltcoin.

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