Cardano (ADA) Price Could Move Higher In The Near-term, Here’s A Potential Target
The price of Cardano (ADA) created a bullish pattern above the previous significant resistance zone. Technical indicators suggest that the ADA price will continue to rise in the near future.
Double Bottom Pattern
The Cardano price has been on the rise since bouncing from the support zone at $0.24. During this process, it broke above the horizontal resistance at $0.3 and quickly reached the next crucial resistance level at $0.38.
The $0.3 zone is a very important zone as it has played roles of support and resistance since November 2022. Therefore, reclaiming it signifies a bullish signal.
After the initial decline, the ADA price confirmed the $0.3 zone as support twice (green arrows). This action formed a double bottom pattern, a bullish pattern that often indicates the continuation of the previous upward movement.
The daily RSI indicator has also flipped the 50 level to support during this process. As a result, the ADA price is likely to retest the $0.38 level in the near future.
Short-term Support Line
The Cardano (ADA) price has risen above an ascending support line since recovering from the $0.24 support area.
This line has provided support for the price several times, most recently on July 26 (blue arrow).
This shows that the bulls are viewing any drop to this support line as a buying opportunity. Therefore, the short-term trend will be considered bullish as long as the ADA price maintains it.
Technical indicators suggest that the ADA price will continue its recovery in the near future. The most plausible target for this movement is $0.38.
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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