The price of Cardano (ADA) will continue to rise if it maintains this level
Date: 2023-07-24 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
The price of Cardano (ADA) has bounced off long-term and short-term diagonal resistance. This may indicate the beginning of a new bullish trend.
However, despite the fact that the daily timeframe supports continued growth, the weekly timeframe has not yet confirmed the reversal.
Cardano is trying to continue growing
ADA technical analysis on the weekly timeframe shows that in early January, the price of the asset bounced off the descending resistance line, which lasted more than a year. This breakout was expected to lead to a significant upward movement. However, after it, Cardano pulled back twice and returned to the descending resistance line.
While the second return led to a new yearly low, it also created a very long lower wick, which is considered a sign of buying pressure.
The weekly Relative Strength Index (RSI) does not give clear signals. Despite the growth, it is still below 50, which indicates the uncertainty of the direction of the trend at the moment.
ADA Price Prediction: Is the Breakout Legitimate?
The readings of the daily timeframe hint at the development of a positive scenario for ADA. There are several reasons to support this view.
First, the price of Cardano has broken above the short-term downward resistance line that has existed since April 13, which is a clear and decisive bullish signal.
Secondly, the asset successfully returned to the $0.30 area and confirmed it as support before the rebound.
In addition, the daily RSI is currently above the 50 mark and has an upward trajectory, which is also indicative of bullish momentum.
However, a close below the $0.30 horizontal area will cancel out the positive outlook. In this case, the price of ADA may fall to $0.25.
