The Cardano (ADA) price is experiencing significant upward movement
The ADA price has been on a bullish streak, creating its eighth consecutive weekly candlestick. This surge has led to a new yearly high of $0.50, the highest since September 2022. Moreover, ADA broke out from a long-term resistance level that had been in place for 430 days.
RSI indicates positive momentum for ADA
Market traders use the Relative Strength Index (RSI) as a momentum indicator. Currently, the weekly RSI for ADA is above 50, indicating a positive trend. It has also entered overbought territory, similar to previous instances that preceded sharp upward movements.
Predicting the future of Cardano’s price
Technical analysis from the daily time frame supports the ongoing upward movement of ADA. The Elliott Wave theory suggests that ADA is currently in wave three of a five-wave upward movement. This projection indicates a target price of $0.70, requiring a 40% increase.
The daily RSI further supports this prediction as it broke out from its bearish divergence trend line and is moving upwards.
Considerations for potential price decrease
If the ADA price falls below the wave one high at $0.38, it could indicate that the increase was corrective rather than sustained. In such a scenario, ADA may experience a 40% decrease to the next support level at $0.30.
Hot Take: Cardano’s Bullish Momentum Continues
The Cardano (ADA) price has shown remarkable strength with its ongoing bullish streak and breakout from long-term resistance. The positive RSI readings and Elliott Wave analysis suggest that ADA’s upward movement may continue, potentially reaching a target price of $0.70. However, caution is advised, as a decrease below key levels could indicate a corrective trend. Overall, ADA’s current momentum is promising and worth monitoring for potential investment opportunities.
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