Top ten ranked cryptocurrency Cardano has been on the radar of analysts this week as it records bullish movements and outperforms most other major cryptocurrencies.
Data from Messari shows the price of Cardano appreciating 12.07% over the past seven days, outperformed by only Stellar Lumens in the top ten cryptocurrencies which recorded a 20.63% over the same time period.
Another reason analysts have been closely monitoring Cardano is the bullish ascending triangle pattern it has been forming.
An ascending triangle pattern is a bullish trend continuation pattern which forms when price forms an upward trend from a series of higher lows but also meets a resistance level above.
Cardano has been meeting resistance at the $0.05 level on numerous occasions and its outperformance this week is bringing price close to retesting the level.
Several cryptocurrencies have outperformed recently after forming ascending triangle patterns.
Stellar lumens broke above an ascending triangle pattern last week resulting in it being the top performer among major cryptocurrencies over the past seven days.
The top performer in trading yesterday, Quantum, also broke above an ascending triangle pattern.
Even though the price of Cardano has been increasing to test the resistance level at $0.05, it looks less likely to break above on this test.
This test is taking place with less buying pressure from the previous test in February.
The RSI is trading lower on both the daily chart and the 6-hour chart from the previous test lowering the odds that price can successfully break above on this test.
South Korean project ICON is a cryptocurrency which is forming bullish movements on the longer-term daily timeframe while forming more bearish patterns on the lower timeframe charts.
The price of ICON has been increasing since forming its 2019 low in early February. It has since been forming a bullish market structure with a series of higher highs and higher lows forming.
It is currently undergoing its third corrective move of the increase characterized by small losses being recorded on the daily chart.
The previous two corrective moves were short-lived, but this movement is lasting longer and forming more bearish patterns on the shorter-term timeframe.
On the 6-hour chart, we are seeing a triangle pattern forming after both lower highs and higher lows formed.
The pattern is similar to a descending triangle pattern with the downward trendline being significantly steeper than the upward trendline forming the triangle.
A descending triangle is a bearish trend continuation pattern that increases the odds that the next significant movement will be one to the downside.
- Cardano is one of the top-performing major cryptocurrencies as it forms an ascending triangle pattern.
- Cardano looks unlikely to break above the ascending triangle pattern on this test with the buying pressure being lower than the last test.
- ICON has been increasing since early February but is currently undergoing a corrective move.
- ICON is forming a more bearish pattern on the shorter 6-hour timeframe increasing the likelihood of a move to the downside.
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