Cardano is displaying a cup-and-handle formation on four-hour charts that could push the token toward $0.51 if validated, though Thursday's 6% pullback to $0.3969 has complicated the technical setup and left traders watching for a decisive break above $0.423.
What Happened: ADA Forms Bullish Pattern
Market analysts identified the pattern, noting that $0.423 represents the handle level that must be cleared to confirm the formation.
The token tested the $0.42 range twice on Jan. 14 but failed to hold, falling back to the $0.40 support zone.
ADA's movement tracks closely with Bitcoin, which briefly reclaimed $97,000 and helped Cardano touch $0.45.
The altcoin also received a boost from Midnight, the privacy-focused sidechain that Charles Hoskinson introduced several months ago, whose native token NIGHT surged 200%.
Also Read: Ethereum Holds $3,280 Level As Momentum Indicators Flash Warning Signs
