Cardano (ADA) Faces Potential Correction Despite Bullish Bounce

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.


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.

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