The Cardano (ADA) Price Falls After Reaching New Yearly High
The Cardano (ADA) price has experienced a decline after reaching a new yearly high of $0.68 on December 14. This marks the end of eight consecutive weeks of bullish candlesticks, leading to concerns among bulls.
Cardano Increase Leads to New Yearly High
Looking at the technical analysis on the weekly time frame, the ADA price has been increasing rapidly since October. During this increase, it broke out from a long-term horizontal resistance area that had been in place for 420 days, resulting in a new yearly high of $0.68 on December 14.
Bearish Candlestick Signals Decrease in ADA Price
However, last week, the price created a bearish candlestick characterized by a long upper wick. As a result, the ADA price has slightly fallen since then.
RSI Indicates Bullish Trend Despite Price Decrease
Market traders use the RSI as a momentum indicator to determine overbought or oversold conditions and make decisions about buying or selling an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite. Despite the slight decrease in ADA price, the RSI is above 50 and moving upwards, indicating a bullish trend.
Cardano (ADA) Price Prediction – Correction or Extension?
An analysis of the daily time frame suggests that the ADA price is expected to correct before continuing to new highs. This prediction is based on the wave count and RSI readings. According to cryptocurrency trader Blue Crypto, the main resistance area for ADA is at $0.68. If the price breaks this level, it could quickly rise to the next resistance at $0.90.
Most Likely Count Suggests ADA Will Not Break Resistance
However, the most likely count indicates that ADA will not break out above the $0.68 resistance. Instead, it has started wave four in a five-wave upward movement. This suggests that ADA will fall by 18% and reach the 0.382 Fib retracement support level at $0.50. The daily RSI supports this scenario with a bearish divergence.
Potential for Price Increase if Above Resistance
Despite the bearish price prediction, if ADA moves above $0.68, it could mean that wave three will extend. In this case, the ADA price has the potential to increase by 40% to the next resistance at $0.88.
Hot Take: Cardano’s Price Faces Uncertainty After Reaching New High
The Cardano (ADA) price recently reached a new yearly high but has since experienced a decline. Technical analysis and indicators suggest both bullish and bearish scenarios for ADA’s future price movement. Bulls may be concerned about the recent decrease and the potential for further correction, while a breakout above resistance levels could lead to significant price increases. It remains to be seen how ADA will perform in the coming weeks as market conditions continue to evolve.
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