Cardano (ADA) Price Surges to New Yearly High
The price of Cardano (ADA) has experienced a rapid increase since October, reaching a new yearly high on December 13. While the price is not currently trading near a horizontal resistance area, short-term time frames indicate some weakness. However, ADA is on track to achieve its ninth consecutive bullish weekly candlestick.
Cardano (ADA) Technical Analysis
ADA’s weekly technical analysis shows a significant upward movement since October, with the price hitting a new yearly high of $0.68 on December 13. This movement also includes a breakout above a long-standing horizontal resistance area that had persisted for 430 days.
Relative Strength Index (RSI) Analysis
The Relative Strength Index (RSI) is commonly used by traders as a momentum indicator. In the case of ADA, the weekly RSI is rising and sits above 50, indicating favorable conditions. It has also entered into overbought territory, which has previously preceded significant upward movements in ADA’s price.
Cardano (ADA) Price Prediction
Technical analysts suggest that ADA’s price has reached the top of wave three in a five-wave upward movement according to the Elliott Wave theory. The increase in Total Value Locked (TVL) within Cardano’s DeFi ecosystem has positively impacted its price. However, there may be a local top since wave three is significantly longer than wave one. If the count is correct, ADA could experience a corrective wave four at the $0.50 support level.
Hot Take: Will ADA Continue to Rise?
While there are indications of weakness in short-term time frames and the possibility of a corrective wave four, ADA still has the potential to extend wave three and reach the next resistance at $0.88. Ultimately, the future movement of ADA’s price will depend on market conditions and investor sentiment.
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