“Cup and Handle” is a bullish pattern that resembles a cup with a handle
According to data from CoinMarketCap, Cardano is down almost 9% in the last 24 hours at $0.50. The bulls locally capitulated after a failed attempt to push the price above $0.613 on May 16.
On the daily chart, the pullback from the Nov. 9, 2021, high of $2.38 and the recovery in late March followed by another round of declines resembles a “Cup and Handle” pattern.
The “Cup and Handle” pattern is a bullish pattern that resembles a cup with a handle, where the cup is shaped like a “u” and the handle has a slight downward drift. The consolidation period is captured in the handle, which is usually followed by a breakout. The target for cup and handle formation is the height of the cup plus the break point of the handle.
For this pattern to gain strength, Cardano bulls might need to squash the horizontal barrier near the daily MA 50 at $0.85. Above that, another barrier is located at the daily MA 200 at $1.19. Rising above these constraints might imply a 100% rally for the eighth largest cryptocurrency, Cardano.
Cardano recently found support for declines near the $0.39 level. Otherwise, if a new test of this level is necessary in the next few days and the resilience of this support is confirmed, a new high could be reached soon.
Cardano’s IOHK shares growth updates
Cardano’s parent company, IOHK, has shared information about the most important updates to the Cardano ecosystem, including listings, testnet launches, migrations, partnerships and more.
One thread included information about various projects focused on developing a variety of solutions. The AadaFinance testnet went live last week. The Indigo Protocol has also launched its private testnet.
Earlier in the week, the Cardano flag reached the summit of Mount Everest, for which Charles Hoskinson, Cardano founder, praised the dedication of the Cardano community, saying, “We got marketing, It now has three million members and is growing.”
