Can Cardano (ADA) Price Increase Lead to New Yearly High?
The price of Cardano (ADA) has increased swiftly since October 19. It moved above $0.40 yesterday for the first time since April.
The ADA price fell slightly afterward but still trades above the $0.35 support area. Will it begin another increase?
Cardano Reaches Range High
The ADA weekly timeframe technical analysis shows that ADA has traded between $0.25 and $0.40 since November 2022.
While ADA fell below this area in June, it reclaimed it after creating a long lower wick (green icon). Such wicks are considered signs of buying pressure.
The ADA price created a higher low inside the area in October and accelerated its rate of increase afterward. This week, the Cardano price reached a high of $0.41, slightly below the yearly high of $0.46.
The ensuing decrease validated the $0.40 area as resistance.
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With the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.
The RSI is increasing and is above 50, signs of a positive trend.
The yearly Cardano summit has come to an end. The first-ever “Battle of the Builders” competition was held during this summit. The Decentralized Application (dApp) Maestro was the winner of this competition.
The Cardano community also voted Adam Dean for giving the best Cardano Improvement Proposal.
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ADA Price Prediction: Will Cardano Reach New Yearly High?
The daily timeframe gives a slightly bullish reading. ADA broke out from a descending resistance trend line and reclaimed the $0.35 horizontal resistance area.
Furthermore, the RSI generated a hidden bullish divergence (green). This is a sign that often leads to trend continuation.
In ADA’s case, it legitimizes the ongoing increase and reclaim of horizontal area.
Cryptocurrency trader Cryptoinsightuk is extremely bullish on the ADA price, suggesting that it follows a fractal that preceded the Solana (SOL) price increase. If the fractal is followed, ADA can increase to $0.80.
On the bearish side, ADA created a bearish candlestick with a long upper wick yesterday (red icon). While this caused a drop, ADA still holds above the $0.35 horizontal area.
In any case, the ADA trend can be considered bullish as long as a close below the $0.35 area does not occur. A Cardano price bounce at the support area can lead to a 20% increase to the next resistance at $0.45, which is close to the yearly high.
Despite this bullish ADA price prediction, a close below the $0.35 horizontal area can lead to a 20% drop to the next closest support at $0.30.
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In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.