Cardano (ADA) price has been showing upward movements since October 19. Yesterday, the price reached above $0.40 for the first time since April. Although the price has dropped slightly after this increase, it is trading above the support level of $0.35.
Cardano Reaches Highest Level of Range
When we analyze the technical analysis of ADA on a weekly time frame, we can see that ADA has been moving in a channel between $0.25 and $0.40 since November 2022.
ADA had fallen below the mentioned price zone in June but after forming a long lower wick (green symbol), it recovered and regained the zone. When interpreting such wicks, attention is generally drawn to buying pressure.
After June, ADA formed a lower low in October and accelerated its rate of increase in the following period. This week, Cardano price approached $0.46, the highest level of the year, and reached $0.41.
After visiting the level, the area of $0.40 turned into a resistance. During this process, investors turned their attention to the Relative Strength Index (RSI). RSI can reveal whether it is overbought or oversold and can guide investors’ moves. RSI is still increasing and is above the level of 50. This can be interpreted as signs of a positive trend in terms of an upward movement.
Will Cardano (ADA) Rise?
Daily time frame charts indicate a short-term increase. ADA seems to have broken out of a decreasing resistance trend line and stayed above the horizontal resistance area of $0.35.
In addition, a hidden bullish divergence (green) was detected in the RSI. This is generally interpreted as an indication that the trend will continue. The current situation of ADA shows ongoing increase linked to the horizontal area to investors.
Crypto investor Cryptoinsightuk commented on the potential future of ADA. The investor stated that ADA could rise to $0.80 depending on following the fractal, which came before the price increase of Solana (SOL).
Despite all these, in the chart analysis, it was observed that ADA formed a long upper wick with a bearish candlestick (red symbol) yesterday. Although this candlestick may cause a decrease, ADA is currently trading above the horizontal level of $0.35.
As long as there is no closing below the $0.35 region, investors’ hopes for an increase may continue. A price jump that can occur from the support area can pave the way for a 20% increase towards the next resistance at $0.45, close to the highest level of the year.
Despite all the expectations of an increase, a closing that can occur below the horizontal support of $0.35 can lead to a 20% decrease towards the next support at $0.30.
