The Cardano (ADA) price has experienced a slight decrease since reaching its yearly high of $0.68 on December 14. The rally seems to be losing momentum in lower time frames. However, the weekly analysis shows that ADA has been trading in a horizontal range for most of the year until it started an upward movement in October. Since then, ADA has seen significant gains and created nine bullish candlesticks.
The weekly Relative Strength Index (RSI) is above 50, indicating a bullish trend. Despite being overbought, there are no signs of a bearish divergence. Analysts have a positive view of ADA’s future price trend, with some predicting a breakout from a symmetrical triangle formation. Others believe that the price will continue to increase based on consistent higher lows.
According to Elliott Wave theory, ADA may have reached the top of wave three in a five-wave upward movement. There is a possibility of wave four starting, which could lead to a 15% decrease to the 0.382 Fib retracement support level at $0.50. However, if ADA surpasses the yearly high, it could surge by 45% to the next resistance at $0.88.
Hot Take: Will ADA Maintain Its Bullish Momentum?
Despite experiencing a slight decline from its yearly high, Cardano (ADA) has shown strength and potential for further growth. Technical indicators suggest a bullish trend, with analysts predicting breakouts and upward movements. However, there is also a possibility of a correction in the near future.
As an investor or trader, it is important to closely monitor ADA’s price action and consider various factors before making any decisions. Keep an eye on key support and resistance levels, as well as market sentiment and overall cryptocurrency market trends. With careful analysis and risk management strategies, you can navigate the volatile crypto market and potentially capitalize on ADA’s potential gains.
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