Cardano (ADA) has succeeded in confirming the long-term resistance line as support. It is expected to continue to rise in the future.
Cardano’s Djed stablecoin has performed well during the recent storm, where USDC, BUSD, and many other stablecoins lost the peg of 1 USD. This demonstrates the stability of Djed and may attract more investors in the future.
Long-term outlook
Cardano (ADA) has fallen below the descending resistance line since reaching an all-time high of $3.1 in September 2022. During this period, it reached a low of $0.24 in late December before starting the current increase.
This increase has helped the price breakout the decreasing resistance line and test the horizontal resistance zone at $0.43. Although rejected, it turns out that the subsequent drop was just a retest in the uptrend. ADA rebounded from the previous resistance line last week, confirming the end of the downtrend.
Therefore, ADA is likely to continue to rise to $0.43. Breaking through this level will confirm that the trend is upward and ADA may quickly rise to the next resistance level at $0.56.
The RSI indicator has generated a significant bullish divergence and is sloping upward, supporting the breakout prospects.
Reclaiming the important zone
The 4-hour chart supports the possibility of further increases. After being rejected from the $0.43 zone, ADA broke through the important horizontal support zone at $0.35. However, the bulls prevented the downturn at the Fib retracement support level of 0.5-0.618 and began a strong recovery. This shows strong buying pressure at lower levels.
More importantly, this action has helped ADA regain the $0.35 zone, marking the end of the short-term correction. Therefore, the price is likely to continue to rise to $0.43 in the coming days.
This bullish view will be invalidated if the price breaks below $0.35.
Conclusion
Cardano’s long-term downtrend has ended. ADA’s price may rise to $0.43 in the coming days.
Breaking through this zone will confirm that the trend is upward.
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