Cardano (ADA) recently achieved its Fibonacci (Fib) price target, experiencing a bullish bounce. However, market dynamics now hint at the possibility of a correction phase, prompting investors to exercise caution.
Fibonacci Resistance at $0.61: Cardano reached the 0.382 Fibonacci (Fib) resistance level at approximately $0.61, where it faces potential bearish rejection. Despite this short-term setback, the medium-term outlook for ADA remains bullish, with a substantial increase of over 170% since October.
MACD and RSI Analysis: On the monthly chart, the Moving Average Convergence Divergence (MACD) histogram indicates a bullish trend, supported by the MACD lines crossing in a positive manner. The Relative Strength Index (RSI) is in neutral territory. In the weekly chart, a ‘death cross’ in Exponential Moving Averages (EMAs) and an overbought RSI suggest a potential correction. However, the MACD histogram is trending upwards, providing a mixed signal.
Daily Chart Bullish Momentum: In the daily chart, ADA maintains a bullish trajectory in the short to medium term. A golden crossover in EMAs and a bullish MACD crossover support positive momentum. The RSI, while heavily overbought, does not show clear signs of a bearish divergence, indicating potential continued upward momentum.
Next Targets: If Cardano successfully breaches the $0.61 resistance, the next target is the golden ratio level at around $0.86. The 4-hour chart suggests an early conclusion to the corrective movement, with indicators pointing to a resurgence in bullish momentum.
Bullish Breakout Against Bitcoin: Cardano exhibited a significant price surge against Bitcoin, breaking through key resistance levels. This includes Fib resistance levels and surpassing the 50-week Exponential Moving Average (EMA). ADA’s price rise of over 75% against Bitcoin indicates a strong performance.
Next Resistance Levels: Major Fib resistance levels for ADA/BTC are anticipated at around 0.000015 BTC and approximately 0.00001985 BTC, further supported by bullish MACD trends.
Conclusion:
While Cardano has experienced notable success, especially in its pairing against Bitcoin, the current market dynamics suggest a potential corrective movement. Traders are advised to exercise caution, considering indicators such as the overbought RSI and the potential for a correction to Fib support levels around $0.484 and $0.38. Despite short-term challenges, the overall outlook for Cardano remains bullish, with key resistance levels and positive momentum indicating continued potential for growth.
