Last week’s bullish bounce for Cardano (ADA) has met its Fibonacci (Fib) price target, but there is a possibility of a correction phase.
The price of Cardano has reached the 0.382 Fib resistance level at approximately $0.61, where it may face bearish rejection. Despite this short-term setback, the medium-term outlook remains bullish, supported by the significant increase in ADA’s price since October.
On the weekly chart, there are mixed signals, with a ‘death cross’ in the Exponential Moving Averages (EMAs) and an overbought RSI suggesting a correction might be due. However, the MACD histogram is trending upwards, indicating a strong bullish trend.
Cardano may undergo a correction to support levels at $0.484 and $0.38, with additional support provided by the 50-week EMA and 200-week EMA. In the daily chart, the trend remains bullish in the short to medium term, supported by a golden crossover in the EMAs and upward trending MACD indicators.
If Cardano successfully breaches the 0.382 Fib resistance level at $0.61 again, it could ascend towards the golden ratio level at $0.86. The 4-hour chart also suggests a possible conclusion to the corrective movement, with bullish momentum expected in the short term.
Last week, Cardano experienced a bullish breakout against Bitcoin, surpassing key resistance levels and showing positive momentum on the MACD histogram. Overall, Cardano’s price has seen a significant rise recently and is performing well against Bitcoin.
Hot Take: Cardano Shows Bullish Momentum Despite Potential Correction
Cardano’s recent price surge and positive technical indicators indicate continued bullish momentum in both its USD and BTC pairings. While a correction may be on the horizon, the overall outlook for Cardano remains positive. Traders should closely monitor key support and resistance levels to make informed trading decisions.
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