<

Cardano (ADA) price breaks out strongly, is $1 in sight?

The price of Cardano (ADA) is breaking above the long-term resistance zone on the weekly timeframe. If successful, a strong uptrend is likely to occur.

Long-Term Resistance Zone

The Cardano (ADA) price has been moving higher since bouncing from the previous horizontal resistance zone at $0.46 during the week of January 22 to 28, 2024 (green arrow).

The upward momentum has helped break above the long-term resistance zone at $0.66 this week, a level that rejected the price multiple times in December 2023 (red hammer).

However, the ADA price has not yet closed the weekly candle above this zone, which is necessary to confirm the breakout.

The weekly RSI indicator has broken the descending divergence line and surged into the overbought zone, indicating that the bullish momentum has returned.

If the breakout is successful, the ADA price could rise by 66.29% to the next significant resistance zone at $1.2.

ada-gaint
ADA/USDT weekly chart. Source: TradingView

Daily Outlook

The daily chart shows that the ADA price has broken above the $0.66 resistance zone and is currently in the process of confirming it as support (green arrow).

The daily RSI supports the continuation of the uptrend as it enters the overbought zone but has not yet created any bearish divergence.

Therefore, the ADA price could continue to rise towards the nearest horizontal resistance at $0.89 in the coming days.

Additionally, this move also helps the price break above the $0.66 resistance level on the weekly timeframe.

ada-gaint
ADA/USDT daily chart. Source: TradingView

Conclusion

The most likely prospect suggests that the ADA price will continue to rise in the near future. The nearest target is $0.89, and potentially higher towards $1.2.

The bullish outlook will be invalidated if the ADA price breaks and sustains below the $0.66 zone on the daily timeframe.

Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like