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Altcoin Cardano’s (ADA) recent price movement paints a nuanced picture as it struggles with long-term resistance, also raising concerns about the sustainability of its upward trend. The failure to surpass a significant resistance level at $0.68 led to the formation of a notable bearish candle, prompting a reassessment of ADA’s trajectory.
Weekly Outlook: ADA Coin’s Journey
Altcoin ADA has remained within the $0.25 to $0.43 range since October 2022, covering a 59-week period. A breakthrough above this range was marked by a challenging bullish candle, indicating a potential shift in control towards the bulls and the start of a new long-term uptrend. Despite this optimistic outlook, ADA encountered resistance at the $0.68 level, casting a shadow over the continuous upward momentum.
The weekly Relative Strength Index (RSI) has fallen below the critical level of 70 and is trending downwards, signaling a potential decrease in bullish strength. As a result, the ADA price may be subject to further adjustments and could head towards the familiar resistance at $0.42.
Bullish Divergence Signals on the Four-Hour Chart
While the weekly analysis casts a cautious light on ADA’s direction, the 4-hour chart reveals some interesting bullish signals. Both the price action and the RSI indicator are displaying a notable bullish divergence, particularly after a period of intense selling pressure. The 4-hour RSI in the oversold region formed a bullish divergence coinciding with ADA’s bounce from the minor resistance zone at $0.46.
The convergence of these factors points to a potential upward move for ADA, with an expected rise to the nearest horizontal resistance at $0.53.
Navigating ADA’s Near-Term Trajectory
Altcoin ADA, while navigating the confusing terrain of resistance and potential corrections, the most reasonable scenario points to an adjustment towards the previous range’s resistance at $0.42. However, the presence of bullish signals on the 4-hour chart offers a nuanced perspective, suggesting a potential rise to $0.56 before continuing the broader downtrend.
Cryptocurrency markets’ dynamic nature advises ADA investors to monitor these fundamental levels and indicators for informed decision-making. The interaction between resistance levels, bullish signals, and overall market sentiment is likely to shape ADA’s near-term trajectory.
