Cardano (ADA) Price Analysis: ADA Holds Key Support, Potential for Upside Breakout
Crypto News – Cardano’s (ADA) price has experienced a slight dip since November 16, but it continues to trade above a critical support level.
Throughout November, ADA has been consolidating its position above this support zone, leaving traders eager to see if an upward trajectory is on the horizon.
Cardano Reaches a Notable Range High
A technical analysis of ADA on the weekly timeframe reveals that the price has been moving within a horizontal range for the majority of the year.
In June, there was a momentary breakdown from this range, but a prominent long lower wick (depicted as a green icon) signaled a resurgence of buying pressure, ultimately leading to the recovery of the range’s lower boundary.
In October, ADA established a higher low and picked up momentum. Over the subsequent weeks, ADA recorded five consecutive bullish candlesticks, culminating in a recent high of $0.41, which is only marginally below its yearly peak of $0.46.
The Relative Strength Index (RSI), a crucial momentum indicator for traders, suggests that the bulls still hold an advantage. With the RSI above 50 and trending upward, positive momentum appears to be in play.
What Are Traders Saying?
Crypto traders and analysts have varying perspectives on ADA’s price trajectory.
Crypto Merlin shared a fractal pattern derived from previous market cycles, indicating an imminent acceleration in ADA’s price, with the potential for substantial gains.
CryptoBusy, on the other hand, is cautious about ADA’s future direction, citing strong resistance at the $0.40 level. He highlights that this price level has alternated between support and resistance for an extended period, emphasizing the importance of a breakthrough for a substantial upward move.
SatoshiClub also expresses caution, as ADA has struggled to breach the $0.40 resistance zone. They withhold a bullish outlook until a definitive breakout occurs.
ADA Price Prediction: Can ADA Surpass $0.40?
While the weekly chart remains uncertain, the daily chart exhibits a bullish tone, supported by both the RSI and price action.
The daily chart illustrates ADA’s accelerated ascent since it broke out of a descending resistance trend line on October 20. During this climb, ADA successfully surpassed the $0.30 and $0.35 horizontal resistance levels and is currently consolidating above the latter.
Significantly, the daily RSI has exhibited hidden bullish divergence above this support zone, signaling a robust potential for trend continuation.
Consequently, ADA’s price is anticipated to target the nearest resistance at $0.45, marking a potential 15% upward move.
Despite this optimistic ADA price prediction, a daily close below the $0.35 horizontal support level would introduce downside risks, with a potential 25% decline towards the $0.30 support level.
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