Cardano has been on a tear in the past few sessions and has cleared enough upside barriers to set its sights higher. The next possible resistance is located at the 0.1000 mark.

The price has formed higher lows and higher highs to trend inside a rising channel on its 4-hour time frame. Cardano recently surged past the mid-channel area of interest after a bit of hesitation and is now aiming for the channel resistance at the 0.1000 psychological mark. Now this has held as a ceiling last month, so it’s likely that bulls might book profits right there.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to carry on than to reverse. The moving averages avoided a near bearish crossover, which is also a sign that bulls are on the defensive. Price is also increasing its gap from the moving averages to signal that bullish momentum is picking up.

RSI has reached the overbought zone to show that bulls are tired and that sellers might take over as the oscillator heads south. Stochastic has also reached the overbought region to reflect exhaustion among buyers. With that, profit-taking could happen at nearby resistance levels, likely spurring a pullback to the mid-channel area of interest at 0.0900, the dynamic support at the moving averages, or the very bottom of the channel at 0.0800.

Cardano has been one of the top performing cryptocurrencies over the past 24 hours, advancing 8% against bitcoin and around 10% to the dollar. Analysts point to the Shelly activation as the possible catalyst for the rally as development phase and step-by-step implementation of updates could render Cardano as the most decentralized cryptocurrency.

This also supports speculations that Coinbase is gearing up to list this digital asset on their platform soon.

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