Cardano (ADA) Price Broke Out Strongly, Here’s A Potential Target
The price of Cardano (ADA) has broken above a significant resistance level. It is expected to continue rising in the near future.
Long-Term Range
Cardano (ADA) has been trading within a long-term range between $0.24 and $0.44 since October 2022. Both the resistance and support levels of the range have been tested multiple times, confirming the validity of the range.
During the week of October 16 to 22, the ADA price bounced up from the support of the range (green arrow) and formed a bullish engulfing candlestick pattern. This pattern occurs when the previous downtrend is completely overshadowed by the following uptrend, often leading to a strong upward move.
The weekly RSI (Relative Strength Index) has created a significant bullish divergence and surged above the 50 level. Both are bullish signals, supporting the continuation of the uptrend.
If the upward momentum persists, the ADA price could continue rising towards the resistance of the range at $0.44.
Daily Outlook
The daily chart shows that Cardano (ADA) has broken above a crucial resistance level at $0.30 with a large bullish candlestick and substantial trading volume. This shows that the trend has turned bullish.
The daily RSI remains in the oversold region and has not formed any bearish divergence, a sign that the upward momentum is still strong.
Therefore, the ADA price is likely to continue rising towards the next resistance level at $0.38, which is more than 20% higher than the current price.
Conclusion
The most probable scenario suggests that the ADA price will continue to rise in the near future. The immediate target is $0.38, with further potential to reach $0.44.
This outlook could be invalidated if the ADA price sharply declines and closes below the $0.30 level 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.
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