Cardano has formed higher lows recently and found resistance around the 0.050 marks for creating an ascending triangle pattern. The price just bounced off the bottom and seemed prime for a test of resistance.
The 100 SMA is currently above the longer-term 200 SMA to stipulate that the path of the least resistance is to the upside. In simple worlds, resistance may be more likely to break rather than to hold. In that scene, there are chances that Cardano could climb up by the new height, which spans 0.0250 to 0.050. Additionally, the moving averages line up with the bottom to add to its strength as backing in the event of another dip.
A break that is below the backing support could similarly be followed by a drop which is the same height as the triangle. RSI is currently hovering around the overbought levels and might be to head south soon, specifying that selling pressure could pick up. On the other hand, Stochastic seems to be pointing back up for reflecting in bullish momentum.
Therefore, Cardano could be drawing great upside momentum from the anticipation for its upgrade. At press time, the testnet is having Daedalus 0.13.0 and Cardano SL 3.0.0 and a plethora of network advancements. The mainnet is anticipated to be launched in April, explaining the steady upside pressure on price as traders may be getting in early.
Also, the community is looking forward to the new consensus program – Ouroboros BFT – which would work as a bridge for those transiting from Ouroboros Classic (current protocol) to Ouroboros Genesis (Shelly era protocol).
Ouroboros BFT won’t be active immediately after the deployment of the Cardano 1.5 release. Once it is activated, the Ouroboros Classic protocol won’t work. Thus, it would be creating a hard fork that will most likely be executed smoothly.
Further advancements could stimulate an upside breakout from the consolidation pattern. However, any security threats or complications could force the price to retreat.