Cardano (ADA): Key Levels to Watch by Year-End
Date: 2023-12-23 Author: Dima Zakharov Categories: BLOCKCHAIN, CRYPTO PAYMENTS
Cardano Surpasses Annual High
On December 14th, the price of Cardano (ADA) reached a new annual high of $0.68, concluding a remarkable eight-candle bullish streak. The weekly timeframe reveals that ADA's price has been steadily climbing since October, as indicated by the green icon.
During this upward trend, ADA broke through a long-term horizontal resistance area that had held for 420 days, enabling it to achieve the new annual high on December 14th.
However, last week, the token formed a bearish candle characterized by a long upper wick, as indicated by the red icon. Since then, ADA has experienced a slight dip.
RSI Signals Bullish Trend
Despite the minor price decrease, the Relative Strength Index (RSI) indicator remains significantly above the neutral 50 mark, trending upwards, suggesting a bullish trend.
ADA Forecast: Correction or Further Upside
Cryptocurrency trader Blue Crypto believes that the key resistance area lies at $0.68. If the price surpasses this level, it may quickly rise to the next resistance at $0.90.
However, the daily timeframe suggests that ADA's price may need to correct before resuming its ascent to new highs.
The most likely Elliott Wave analysis scenario implies that ADA may not breach the $0.68 resistance. Instead, it could be initiating the fourth wave within a five-wave bullish structure, represented by the black color. Sub-wave analysis is depicted in white on the chart.
If this projection holds true, the token might decline by 18% to the Fibonacci 0.382 correction level at $0.50.
The daily RSI also supports the downward scenario, as it has formed a bearish divergence, indicated by the green line.
On the other hand, a rise in ADA above $0.68 would signify that the third wave is expanding. In this case, the price potentially has room to increase by 40% to the next resistance at $0.88.
