The price of leading altcoin Cardano (ADA) showed a notable 2.3% increase in the last 24 hours, reaching around $0.408. This rise came just days before the eagerly awaited Cardano Chang hard fork, raising expectations among the community and investors for more price movement.
A Rise Up to $0.82 is Possible
ADA saw its highest level of the year during the mini bull run in March and then fell to form a descending wedge. This formation typically indicates a bullish trend, suggesting a potential rally. Despite the death cross scenario on May 11, 2024, where the 50-day simple moving average fell below the 200-day average, optimism exists that an upward momentum could correct this situation. Currently, ADA’s price is below both the 50-day and 200-day moving averages, but this may soon change.
For a breakout confirmation, ADA’s price needs to surpass the resistance around $0.47 or retest the upper trend line of the descending wedge around $0.37 before rising. Failing to stay above this level could invalidate the breakout and cause the price to exit the wedge formation. If the bulls remain strong, ADA could potentially rise by 98% and reach the year’s highest levels. Key resistance levels to watch include $0.47, $0.54, and $0.6.
Support Levels and Consolidation to Watch
In a downward scenario, ADA could find support around $0.37 and $0.33 before attempting another bounce. Alternatively, it could enter a consolidation phase between $0.47 and $0.36, preventing the expected breakout. Such scenarios necessitate careful monitoring to determine ADA’s next price direction.
Meanwhile, data from Coinalyze shows a significant 3.5% increase in ADA’s Open Interest (OI) in the last 24 hours, with 70% of investors taking long positions and 30% short positions. This shift in market sentiment indicates growing optimism among investors.
Additionally, the upcoming Chang hard fork is crucial for the Cardano ecosystem. The hard fork aims to enhance decentralization and unlock 1.5 billion ADA accessible only through a DAO-type proposal and voting system. This development has excited the ADA community and is expected to positively impact the altcoin’s price.
