Cardano (ADA) reached a new all-time high (ATH) price on Aug. 23 and is currently making an attempt at reaching yet another ATH.
It is following a short-term descending resistance line, a breakout from which could trigger an upward movement towards a new all-time high.
ADA reached new ATH
ADA has been moving upwards since July 20, when it was trading at a low of $1.02. So far, it has reached a high of $2.97, doing so on Aug. 23. This is also a new all-time high price.
The token initially generated bearish divergence (blue) and caused a drop in price. However, it has followed that up with hidden bullish divergence (green), a strong sign of trend continuation. In addition to this, the MACD is positive and increasing.
ADA is currently making another attempt at reaching a new all-time high. This week, it will test a new ERC-20 converter in its testnet, and event that could also have a positive effect in its price.
The next closest resistance area is at $3.34. This is the 1.61 external Fib retracement resistance level when measuring the most recent portion of the drop.
Cryptocurrency trader @CryptoCapo_ outlined an ADA chart, stating that the token is facing short-term resistance at $2.65. It has to reclaim it in order to move upwards.
Since the tweet, the token has reclaimed the area, which is now expected to act as support. However, ADA is also following a descending resistance line, in place since the aforementioned all-time high.
Nevertheless, the trend can be considered bullish as long as ADA is trading above the $2.55 support area.
In addition to this, the MACD is positive and the RSI is above 50, both signs of a short-term bullish trend.
The wave count indicates that ADA is in wave five of a bullish impulse (white) that began on March 2020.
The most likely area for the top of the upward movement is between $3.39-$3.51. The target is created by the 1.61 external Fib retracement level (black) and by projecting the length of waves 1-3 to the bottom of wave four.