The Cardano (ADA) cryptocurrency has been exhibiting a bullish trend, especially after breaking out from a long-term descending resistance trend line. The ADA price has recently experienced a slight dip since November 16, but continues to trade above a crucial support area, consolidating its position since the start of November.
On a weekly timeframe, ADA has been in a long-term horizontal range since the year's start. Notably, after an initial breakdown in June, ADA rebounded, showing strong buying pressure. It created a higher low in October and accelerated its growth, nearly reaching its yearly high.
The Relative Strength Index (RSI), a critical momentum indicator, is currently above 50 and on the rise, signaling a positive trend. This is supported by the daily price action, which has shown significant acceleration since ADA's breakout from a descending resistance trend line on October 20. ADA has also successfully cleared the $0.30 and $0.35 resistance areas, now consolidating above the latter.
Cryptocurrency analysts have mixed opinions about ADA's future trend. While some anticipate a rapid increase, others remain cautious, particularly due to the resistance faced at the $0.40 level. A successful breakout from this level could indicate a significant upward movement.
Despite this optimistic outlook, a drop below the $0.35 support level could lead to a considerable decrease in ADA's price, potentially up to 25%. However, the daily RSI has shown a significant amount of hidden bullish divergence, a strong indicator of continued upward trend, possibly leading to a 15% increase towards the next resistance at $0.45.
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.