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Technical Analysis

Cardano (ADA) Bulls Are Back as Price Reaches New Yearly High

2 mins
Updated by Ali M.

In Brief

  • Cardano (ADA) broke out from a descending resistance line.
  • It faces resistance at $0.425.
  • Cardano (ADA) bounced at the $0.346 support area.
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The Cardano (ADA) price regained its footing on February 13 and is currently attempting to break out above the $0.425 resistance area.

ADA is the native coin of the Cardano blockchain platform, created by Charles Hoskinson. The Cardano price broke out from a descending resistance line in the second week of January. After validating the line as support (green icon), it continued the increase that is still ongoing. 

Cardano Price Struggles With Resistance

On February 1, the ADA price reached a new yearly high of $0.421. But despite the increase, it has not yet broken out from the $0.425 resistance area. This is a crucial area since it has intermittently acted as both support and resistance since May 2021.

Cardano (ADA) Price Breakout
ADA/USDT 3-Day Chart. Source: TradingView

Whether the Cardano price breaks out or gets rejected could determine the future trend’s direction. A successful breakout could catalyze an increase to the next resistance at $0.56. Since the weekly RSI is above 50, a breakout is slightly more likely.

Cardano (ADA) Price Prediction: Is the Correction Complete?

The technical analysis from the short-term six-hour chart supports the continuation of the upward movement. While ADA broke down from an ascending wedge on February 9, it bounced at the 0.382 Fib retracement support level four days later. 

Then, ADA began what looked like an impulsive upward movement. 

Cardano (ADA) Wedge Breakdown
ADA/USDT Six-Hour Chart. Source: TradingView

Therefore, the continuation of the increase is the most likely scenario. If a breakout occurs, the ADA price could increase to $0.58. Still, if a drop below the 0.382 Fib retracement support level occurs, ADA could fall to the 0.5 Fib support at $0.326 could follow.

To conclude, the most likely Cardano price forecast is a breakout above $0.425, which could lead to a jump to $0.580. However, a decrease below $0.346 would invalidate this possibility and could lead to a drop to $0.326 and possibly lower.

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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.