The Cardano (ADA) price is currently marking its eighth consecutive bullish candlestick on the weekly chart, signaling a sustained upward momentum. Notably, ADA has broken out from a prolonged horizontal resistance area, contributing to its ongoing uptrend. The weekly technical analysis highlights ADA’s swift ascent since October, reaching a new yearly high of $0.50, the highest level since September 2022.
Cardano Price New Annual Peak with a 10% Daily Surge – Is 1 Dollars Within Reach?
This remarkable surge facilitated a breakout above a long-standing horizontal resistance zone, which had remained intact for 430 days. Traders often rely on the Relative Strength Index (RSI) as a momentum indicator to gauge overbought or oversold conditions and make informed decisions on asset accumulation or sale.
In the current scenario, the weekly RSI is on the rise and sits comfortably above the 50 level, indicating a positive momentum favoring the bulls. Furthermore, the RSI has entered overbought territory (highlighted by the green icon). The last instance when the RSI reached overbought levels (noted by the green vertical trend line) preceded a significant upward movement that ultimately led to ADA token achieving its all-time high.
Cardano (ADA token ) Price Forecast – Can It Reach the 1 Dollars Milestone?
The continuous upward movement of ADA token finds support in the technical analysis conducted on the daily time frame, emphasizing both the wave count and RSI movement.
In technical analysis, practitioners often employ the Elliott Wave theory to discern the direction of a trend. This approach involves studying repetitive, long-term price patterns and understanding investor psychology to make informed predictions about future price movements.
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