Cardano (ADA) has reached a local bottom. A rebound in the direction of $1 is possible

Cardano is attempting to stage a recovery after a recent decline. On the weekly timeframe, ADA has been trading within a horizontal range since November 2022, with repeated tests of support and resistance levels. However, in October 2023, the price started to move upward quickly, breaking out of the range the following month and reaching a new yearly high of $0.68 in December. Despite the subsequent drop, the token rebounded at the top of its range last week, closing the week with a bullish candle. However, there was a long upper wick on the chart, indicating potential resistance.

The weekly Relative Strength Index (RSI) is showing mixed signals, as it is declining but remains above the neutral level of 50, suggesting hidden bullish divergence. This divergence signifies a continuation of the current trend. According to some analysts, ADA’s prospects are positive, and the price could see significant growth.

On the daily chart, the wave pattern and RSI signals support continued price growth. Based on Elliott Wave Theory, ADA is currently in the fifth and final wave of a bullish structure that began in June 2023. To confirm this scenario, the coin needs to break through the descending resistance line. If it does, the price could rise by 55% to the next resistance level between $0.80-$0.90. The daily RSI also confirms this possibility, as it has made a bullish breakout of its trend line.

However, a fall below $0.46 would invalidate this scenario and could push ADA’s price back by 28% to immediate support at $0.40. It’s important to note that the information provided here is for informational purposes only and readers should exercise caution and make their own investment decisions.