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To Propel Higher, Cardano (ADA) Price Must Sustain This Zone

The Cardano (ADA) price has broken above the long-term resistance zone and confirmed it as support. Maintaining above this zone will likely lead to a strong price increase in the near future.

Long-term Resistance Zone

The Cardano (ADA) price broke above the long-term horizontal resistance zone at $0.66 in the week from February 26th to March 3rd, 2024, and confirmed it as support last week (green arrow).

This action marks the continuation of the uptrend since October 2023 and confirms the end of the long-term downtrend.

However, the weekly RSI indicator has created a bearish divergence, a signal often leading to a correction.

Therefore, the ADA price needs to hold above the $0.66 zone for the next few weeks to invalidate this bearish divergence.

If successful, the ADA price could rise by 83.75% to the next significant resistance zone at $1.2.

If unsuccessful, ADA price could drop to the important support zone at $0.46.

ADA/USDT weekly chart. Source: TradingView

Daily Outlook

The daily chart shows the ADA price is in the process of reconfirming the $0.66 zone as support once again (green arrow).

The daily RSI indicator is forming a hidden bullish divergence, a signal often leading to the continuation of the uptrend.

Therefore, the daily chart supports the possibility of the ADA price successfully holding above the $0.66 zone on the weekly timeframe and moving higher.

ADA/USDT daily chart. Source: TradingView

Conclusion

The ADA price is at a critical juncture. Holding above the $0.66 zone could lead to a 83.75% increase to the next resistance zone at $1.2, while a breakdown could lead it to drop to $0.46.

Currently, holding above the $0.66 zone seems more likely.

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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