After months of trading within consolidation, Cardano (ADA) price has broken free, portraying a bullish trend across major timeframes. Currently, there is no cloud of weakness in sight, although a pullback is always plausible.
This unfolding scenario ignites a discussion among investors and analysts on whether the price of ADA could reach $0.42 this week.
Cardano Signals Further Price Gains on the Horizon
Last month witnessed a market recovery, during which ADA bounced off the $0.24 support level, reaching a crucial resistance trendline as noted by technical analyst and founder of DecenTrader, Filbfilb. Indeed, the ascent that continued this week helped Cardano nudge the $0.33 level.
Although this level resisted momentarily, ADA’s price remains robust on the weekly timeframe, harnessing energy to scale further highs. The next resistance, stemming from February’s high at $0.42, awaits its test.
A price retraction from the current trading level could usher a brief pullback before the uptrend resumes. Indeed, a broader pullback might serve as a revalidation of the recent breakout. If the $0.33 level extends support, a solid rebound is on the horizon.
Despite the absence of weakness, a rise may continue until Cardano hits a bigger resistance point. It is worth noting that ADA has already chalked up a 33% gain over the last three weeks. While a minor resistance at $0.33 loomed, the higher resistance levels of $0.35 and $0.38 are the ones to watch for a breakout.
Read more: How To Buy Cardano (ADA) and Everything You Need To Know
While Filbfilb affirmed that “people are betting more” at the current price levels, the rising buying pressure could set the stage for an upswing to $0.42.
As investors’ sentiment veers bullish, the Open Interest (OI) trended higher over the past week despite large dips owing to price volatility. The upward trajectory of price and OI signal a bullish sentiment among investors.
On the downside, should a pullback occur, the closest support level for a rebound sits at $0.30. If this support crumbles, the lower levels to watch are $0.27 and $0.24, with the latter being the last line of defense for the bulls.
ADA Amongst the Altcoins to Benefit the Most
On-chain and technical analyst Ali Martinez also maintains a bullish stance on Cardano. He believes ADA’s current price trend “mirrors the 2018-2020 phase.” However, Martinez pointed out that the most crucial resistance point is at $0.47, a level that could trigger a bull run if breached.
“If history repeats, ADA could stay in this consolidation phase [between $0.24 and $0.46] until July 2024. [Still,] barring unforeseen events like the COVID-19 crash, ADA could break out as soon as December [2023],” Martinez affirmed.
Read more: Cardano (ADA) Price Prediction 2023/2025/2030
According to on-chain analytics company Santiment, the sudden spike in the prices of altcoins like Cardano could come from investors booking profits from Bitcoin and “funneling into large and mid-cap assets.” The firm stated that altcoins are yet to “make up for lost time,” emphasizing the potential for further gains.
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