• Cardano could rally if it breaks above the symmetrical triangle technical pattern it is trading within.
• On-chain data paints a bullish picture as ADA’s dormant wallets are in motion and open interest is rising.
• A daily candlestick close below $0.304 would invalidate the bullish thesis.

Cardano (ADA) price trades within a symmetrical triangle on Friday, a breakout from which could signal a rally ahead. ADA’s rising open interest further supports the bullish thesis, as do the recent movements seen in previously dormant wallets.

Cardano price shows potential for upward momentum

Cardano price trades inside a symmetrical triangle, a technical pattern formed by connecting multiple high and low levels with two converging trendlines (from the end of July to mid-September). This technical pattern has a bullish bias, and the target is generally obtained by measuring the distance between the first swing high and the first swing low to the breakout point. As of Friday, Cardano trades at $0.354, approaching the upper trendline of the triangle. 

Assuming the breakout happens by closing a daily candlestick above the daily resistance level at $0.360, adding the 65% measurement to the potential breakout level of $0.360 reveals a target of $0.595. Investors should be cautious of this theoretical move as it could face a slowdown after an 18% rally to retest Cardano’s daily resistance level of $0.424 as traders could opt to book profits.