Cardano (ADA) has recently experienced a notable upsurge in its market price, breaking above the $0.40 mark for the first time since April. This upward movement is bolstering market confidence, with ADA currently sustaining above the crucial $0.35 support level, sparking discussions about the potential for further increases.
Technical analysis of ADA's weekly timeframe reveals that the cryptocurrency has oscillated between $0.25 and $0.40 since November 2022. A significant recovery was observed in October when ADA formed a higher low within this range and accelerated its upward trajectory, reaching a high of $0.41 this week. However, ADA faced resistance at the $0.40 mark, slightly below its yearly high of $0.46.
The Relative Strength Index (RSI), a key momentum indicator, is showing a positive trend for ADA, currently positioned above 50. This bullish signal is further reinforced by a breakout from a descending resistance trend line and the reclaiming of the $0.35 horizontal resistance area. Additionally, a hidden bullish divergence noted in the RSI suggests a likelihood of continued upward momentum.
Cryptocurrency analysts, including Cryptoinsightuk, project an extremely bullish outlook for ADA, comparing its trajectory to Solana's (SOL) previous price increase. Following this pattern, ADA might potentially climb to $0.80. Despite the formation of a bearish candlestick with a long upper wick, the overall trend for ADA remains bullish, as long as it maintains above the $0.35 support level. If ADA sustains this support, it could see a 20% rise to the next resistance near $0.45, approaching its yearly high.
However, a drop below the $0.35 level could lead to a significant decline, potentially down to the next support at $0.30, according to market analysts.
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.
