Cardano breaks out of its long-term trading range
In November 2022, Cardano entered a long-term horizontal range, and over the months, it was tested repeatedly for strength.
However, in October 2023, ADA started a rapid upward movement and broke out of the range the following month, culminating in December with a new annual high of $0.68.
Although there was a subsequent price decrease, it has now rebounded to the upper end of the range, forming a bullish candle this week.
To foster communication and knowledge sharing among Cardano developers, the Cardano community has organized the first “Buidler Fest,” a two-day event starting today. The event aims to bridge connections and provide a platform for technology-focused discussions.
“Buidler Fest Cardano aims to be a regular event that bridges the distances between the many people involved in specific day-to-day work with Cardano and the blockchain in general, and provides a technology-focused forum for sharing experiences and discussing issues that matter to those who want to participate in the development of Cardano.”
Source: TradingView
While the weekly RSI Momentum Indicator gives mixed signals with a declining index, it remains above the neutral level of 50, forming a hidden bullish divergence (green). This divergence suggests a potential continuation of the upward trend.
ADA forecast: what’s next?
The daily timeframe points to continued growth, supported by price dynamics, wave analysis, and RSI signals.
According to Most Likely Elliott Wave Analysis, ADA has begun the fifth and final wave of a five-wave bullish structure. The fourth wave concluded with a strong rebound on January 8, propelling the price above the 0.382 Fibonacci retracement level.
Despite Cardano still moving along a descending resistance line, the daily RSI has already experienced a bullish breakout of its trendline, suggesting potential upward movements.
Additionally, cryptocurrency analyst dApp analyst predicts that ADA will surpass Bitcoin (BTC) in this cycle.
If the resistance line is broken, the first target level for a top formation would be at $0.81 (1.61 external correction of the fourth wave), representing a 40% increase from the current price.
Source: TradingView
However, falling below $0.50 would invalidate this bullish outlook, potentially leading to a 35% decline in ADA with immediate support at $0.38.
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