Cardano (ADA), a prominent cryptocurrency, has shown remarkable resilience in the market, maintaining a position above a crucial support level. Since early November, ADA has consistently traded above this support zone, raising questions about its next move. The coin has experienced a notable increase following its breakout from a long-term descending resistance trendline. Additionally, the daily Relative Strength Index (RSI) and price action both present a bullish outlook, supporting the potential for further price increases.
Technical analysis on a weekly timeframe reveals that ADA has been trading in a horizontal range since the beginning of the year. Despite an initial breakdown in June, the coin rebounded, showing signs of buying pressure. In October, ADA formed a higher low and accelerated its increase, with a peak close to its yearly high.
The RSI, a key momentum indicator, is above 50 and rising, suggesting a continuation of the bullish trend. However, experts in the cryptocurrency field have mixed opinions. Some analysts predict a significant rise in ADA's price, while others remain cautious, citing resistance at the $0.40 level as a crucial factor.
The daily chart indicates that ADA has cleared significant resistance levels and is currently consolidating above these areas. Notably, hidden bullish divergence in the daily RSI points to a strong likelihood of trend continuation. If ADA maintains its current trajectory, a 15% increase towards $0.45 resistance is expected. However, a drop below the $0.35 support level could jeopardize this upward movement, potentially leading to a significant decrease to the $0.30 support.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.