Back

ADA Retraces After New All-Time High Price

author avatar

Written by
Valdrin Tahiri

19 April 2021 13:55 UTC
Trusted
  • ADA has bounced at the $1.03 support area.
  • ADA has broken out from a descending resistance line.
  • It is likely in wave four of a bullish impulse.
Promo

Cardano (ADA) reached a new all-time high price on April 14. However, it dropped almost immediately afterward.

Despite the drop, ADA has held above its previous diagonal and horizontal support levels. An eventual breakout is expected.

Long-Term ADA Movement 

Sponsored

On Feb. 27, ADA reached a then all-time high price of $0.148. While it decreased almost immediately afterward, the drop served to validate the $1.03 area as support. 

The token bounced afterward and reached a new all-time high price of $1.57 on April 14. However, it has fallen once more since. 

The technical indicators show mixed readings. The MACD is positive but has created one lower momentum bar. The RSI is right at the 70 line. Similarly to the MACD, the Stochastic oscillator has not made a bearish cross but is decreasing. 

Furthermore, there are long upper and lower wicks present. 

Therefore, a look at lower time-frames is required to determine the direction of the next move.

ADA Long-Term
Chart By TradingView
Sponsored

Current Breakout

The daily chart shows that ADA has broken out from a descending resistance line before reaching the all-time high. 

Despite the massive long lower wick, yesterday’s drop only served to validate the line as support. 

However, the token is trading above both diagonal and horizontal support levels. So, the trend can be considered bullish.

ADA Breakout
Chart By TradingView
Sponsored

ADA Wave Count

The wave count indicates that ADA is in wave four of a bullish impulse (white) that began in March 2020. 

Once wave four is completed, two potential targets for the top of the movement are $1.97 and $2.53. 

The targets are found by using a Fib projection on waves 1-3.

ADA Wave Count
Chart By TradingView
Sponsored

A closer look supports this possibility, showing a parallel ascending channel. This is often a corrective movement.

After potentially another lower low that validates the support line of the channel, a breakout is expected.

Conclusion

To conclude, ADA is expected to break out from the current channel eventually. Afterward, it could increase towards $1.97 and potentially $2.53.

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

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 Conditions, Privacy Policy, and Disclaimers have been updated.