#Cardano #ADA #Cryptocurrency #TechnicalAnalysis #BullishTrend #ResistanceBreakout #PricePrediction #ElliottWaveTheory
Cardano (ADA) is currently on the verge of breaking out from a longstanding horizontal resistance that has been in place for nearly three months. This development follows a breakout from a shorter-term descending resistance trend line. The focus now is on whether this momentum can propel ADA above the long-standing resistance. Technical analysis of the weekly time frame shows a significant price increase since October, with the upward trend reaching a new yearly high of $0.68 in December 2023. Despite these gains, ADA initially struggled to surpass the long-term horizontal resistance, resulting in the formation of five successive long upper wicks—a sign of selling pressure. Nevertheless, after a month-long retracement, ADA is making another attempt to break through this critical resistance zone.
The cryptocurrency market is closely watching the Relative Strength Index (RSI) as an indicator of the asset’s momentum. The RSI being above 50 and trending upwards suggests a bullish market condition, potentially giving bulls a competitive edge. This is bolstered by analysts and traders on social media platforms who are optimistic about ADA’s future trajectory, citing institutional inflows and regulatory advantages over competitors like Ethereum. Despite the positive sentiment, some analysts, like Dan Gambardello, remain cautious, suggesting ADA might not surpass the $1 mark before the upcoming Bitcoin halving event. However, the technical analysis of the daily time frame provides a bullish outlook, suggesting that ADA is in the final wave of an upward movement that began in June 2023. If ADA successfully breaks through the resistance and maintains its trajectory, a target price of $0.83, marking a 45% increase from its current price, could be within reach. Yet, a failure to secure this breakout could lead to a drop to the next closest support level.
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