Cardano has formed higher lows and hit resistance at the .9700 mark to create an ascending triangle pattern. The price recently bounced off the top and is setting its sights back on the support again.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that support is more likely to hold than to break. The 200 SMA is close to the triangle bottom around 0.085, possibly adding to its strength as support.

RSI is heading lower to show that selling pressure is in play, but the oscillator is also closing in on the oversold region to show that bears might need to take a break soon. Stochastic is also turning slightly higher after reaching oversold conditions, showing that buyers might be ready to return soon.

A break below the triangle support could spur a drop that’s the same height as the chart formation, which spans 0.070 to 0.097. Similarly, a break above the resistance could spur a climb that’s the same size as the formation.

Cardano is eagerly awaiting the testnet results, and a Twitter user has suggested that this could make room for a big pump in price. According to @Beastlorion:

Been a while since we saw a nice pump on Cardano. I hear the first release of their testnet is tomorrow? Everything lining up for a nice 2x + pump over the next month. $ADA

Zooming out to the longer-term charts shows a large inverse head and shoulders pattern that could be confirmed if the testnet results are enough to impress investors. In particular, the coin is projected to rise by around 117% to 0.197, and the anticipation within the community is also palpable. Of course, however, this could mean that the fallout from disappointment would be just as significant.

Images courtesy of TradingView