Cardano (ADA) is experiencing a remarkable bullish surge, with the price currently in the process of forming its eighth consecutive bullish weekly candlestick. This surge follows a breakout from a long-term horizontal resistance area that had been in place for an impressive 430 days.
The weekly technical analysis highlights the swift ascent of ADA’s price since October, reaching a new yearly high of $0.50 – the highest since September 2022. The breakout above the 430-day resistance level signifies a significant milestone for Cardano.
RSI Indicators Point to Bullish Momentum: Market traders are closely monitoring the Relative Strength Index (RSI) as a momentum indicator to gauge overbought or oversold conditions. The weekly RSI for ADA is currently on an upward trajectory, positioned above 50, indicating that bulls still hold an advantage. Furthermore, the RSI has entered overbought territory, a positive signal. Historical data reveals that previous ventures into overbought territory have preceded sharp upward movements, hinting at the potential for further gains.
Cardano (ADA) Price Prediction – Targeting $1: Analyzing the daily time frame, technical analysts are employing the Elliott Wave theory to discern the trend’s direction by studying long-term price patterns and investor psychology. The most likely wave count suggests that ADA is in the third wave of a five-wave upward movement.
By making wave three 2.61 times the length of wave one, analysts set a target of $0.70. This implies a 40% increase from the current levels. The daily RSI supports this bullish prediction, having broken out from its bearish divergence trend line and showing an upward trajectory.
Cautionary Notes Amid Optimism: Despite the optimistic ADA price prediction, analysts caution that a drop below the wave one high at $0.38 could indicate that the recent increase was corrective. In such a scenario, ADA might experience a 40% decline to the next support level at $0.30.
As Cardano continues its bullish momentum, market participants and investors are closely watching these key technical indicators and support levels, anticipating whether ADA can sustain its upward trajectory or faces a corrective pullback. The crypto community awaits further developments as Cardano charts its course in the volatile cryptocurrency market.
