ADA Could Reach New All-Time High as Upgrade Rolls Out on Testnet

Share Article
In Brief
The Trust Project is an international consortium of news organizations building standards of transparency.

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.

ADA all-time high
Chart By TradingView

Future movement

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.

ADA
Source: Twitter

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.

 

ADA resistance
Chart By TradingView

Wave count

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.

ADA Count
Chart By TradingView

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Share Article

Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

Follow Author

Unlock Next-Level Trading Experience — Earn up to 8.88% APY      

Join

Unlock next-level trading on Bybit with your favorite metaverse      

Join

Buy your first NFT on Bybit and earn up to 20,000 USDT.      

Start Now!