See More

Cardano (ADA) Gains Momentum and Breaks out – This Price Level Could Be Next

3 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Cardano's (ADA) price broke out from its long-term range. It bounced above the range high this week.
  • The weekly and daily time frame readings both suggest the ADA price upward movement will continue.
  • Despite the bullish ADA price prediction, a fall below $0.52 will invalidate the bullish ADA wave count.
  • promo

The Cardano (ADA) price bounced this week, possibly in anticipation of the first Cardano Buidler Fest.

The price trades above a horizontal resistance area but below a short-term descending resistance trend line.

Cardano Breaks Out From Long-Term Range

The weekly time frame technical analysis shows that ADA has traded inside a long-term horizontal range since November 2022. Both the support and resistance of the range have been validated numerous times.

In October 2023, the ADA price began a rapid upward movement and broke out from the range the next month. The increase culminated with a high of $0.68 in December, a new yearly high.

While the price has fallen afterward, it bounced at the top of the range this week, creating a bullish candlestick.

The Cardano Community announced that the first “Buidler Fest” will start today. It is a two-day event where Cardano builders can connect and share. According to the Cardano team:

The Cardano Buidler Fest therefore aims at becoming a recurring event that will bridge that gap between various people involved in the concrete daily work of working with the Cardano and more generally blockchain stack, and provided technology-centric venue to share and discuss things that matter when one wants to be involved in building Cardano.

Cardano (ADA) Price Movement
ADA/USD Weekly Chart. Source: TradingView

Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.

Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite. The weekly RSI gives mixed readings. While the indicator is falling, it is above 50, generating a hidden bullish divergence (green), a sign of trend continuation.

ADA Price Prediction: Where to Next?

The technical analysis of the daily time frame suggests that the ADA’s upward movement will continue. This is because of the price action, wave count, and RSI readings.

Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend.

The most likely wave count indicates that the ADA price has begun the fifth and final wave of a five-wave increase. Wave four ended with a strong bounce on January 8, which took the price above the 0.382 Fib retracement resistance level. 

While the ADA price still follows a descending resistance trend line, the daily RSI has already broken out from its trend line, which often precedes upward movements.

Cryptocurrency analyst, the dApp analyst, also believes that the ADA price will outperform Bitcoin (BTC) this cycle.

If ADA breaks out from its resistance trend line, the first area for a top will be at $0.81, created by the 1.61 external retracement of wave four. This is 40% above the current price.

Cardano (ADA) Price Prediction
ADA/USDT Daily Chart. Source: TradingView

Despite this bullish ADA price prediction, regression below $0.50 will invalidate the bullish count. This could cause a 35% drop to the closest support at $0.38.

For BeInCrypto’s latest crypto market analysis, click here.

Top crypto projects in the US | May 2024

Trusted

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin-Tahiri.jpg
Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona 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. (I do not have a discord and will not contact you first there. Beware of scammers)
READ FULL BIO
Sponsored
Sponsored