Price Cardano (ADA) has broken above a significant price level and confirmed it as support. The technical signals indicate that ADA price will likely rise further in the near future.
Daily Outlook
The price of Cardano (ADA) has been increasing since it bounced from the support level at $0.24. During this process, it broke above the significant price level at $0.3, which has been acting as both support and resistance since November 2022.
Furthermore, this move also helped the price break above the descending resistance line formed since the yearly high at $0.46.
The ADA price has successfully confirmed both this trendline and the $0.3 level as support yesterday (green arrow).
Therefore, ADA is likely to have completed its corrective phase, and a new upward move may occur.
The potential target for this move is the $0.38 level and higher towards $0.46.
Ascending parallel channel
The daily chart shows that the ADA price has been trading within an ascending parallel channel since the recovery from the $0.24 support. This is a bearish pattern that often leads to breakdowns in most cases.
However, instead of a breakdown, the ADA price broke out above this channel with a large bullish candle on June 13. This is a positive development, as it shows that the upward move was impulsive and a strong rally will follow.
The daily RSI indicator supports this possibility by being above 50 and trending upwards.
Conclusion
The technical outlook suggests that ADA price will continue to rise in the near future. The immediate target is $0.38, with further upside potential towards $0.46.
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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