Cardano (ADA) Price Could Retest Yearly High, Here’s Why?
The Cardano (ADA) price has surged from the previous resistance level and broken above a gradually descending resistance trendline. This could spur further increases in the near future.
The Cardano price broke above the significant resistance level at $0.45 during the week of December 4th to 10th, 2023, accompanied by a large bullish candle. This propelled the price toward the next crucial resistance level at $0.67, marking the end of the previous long-term downtrend.
Indeed, after being rejected by this level, ADA successfully flipped the $0.45 level into support during the week of January 22nd to 28th, 2024 (indicated by the green arrow), signaling a shift in sentiment from selling on rallies to buying on dips.
The weekly RSI (Relative Strength Index) is above 50 and trending upward, indicating that bulls still control the market.
Therefore, the ADA price may retest the $0.67 resistance level once again. This corresponds to a potential increase of 24.82% from the current price.
The daily chart shows that the ADA price had been trading below a gradually descending resistance trendline since its yearly high.
On February 7th, 2024, the ADA price formed a higher low and broke above the resistance trendline yesterday. This suggests that the corrective phase may have concluded.
The daily RSI surged above the 50 level and is sloping upward, signaling that bulls have regained short-term control.
Hence, the ADA price could rise toward the nearest horizontal resistance at $0.60 in the coming days.
Technical indicators suggest that the ADA price has completed its short-term correction and may continue to rise. The nearest target is $0.60, with potential further gains up to $0.67.
The bullish outlook would be invalidated if ADA breaks below the $0.45 support level on the weekly 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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