Cardano (ADA) has recently experienced a series of bullish weekly candlesticks, resulting in a positive outlook for the cryptocurrency. Investors are optimistic that ADA will surpass the $1 mark before the year ends. Cardano has been impressing the market with its strong performance, following a bullish trajectory that could potentially lead to a new all-time high. This aligns with the overall trend in the crypto market, led by Bitcoin. Technical signals and data indicate that the price of ADA will continue to increase. However, there are risks involved if the altcoin drops below key support levels.
Data shows that ADA was able to close above a long-term resistance area last week after six attempts. This is the highest weekly close since May 2021 and could potentially mark the beginning of a new bullish cycle. The weekly timeframe reveals that ADA has been on an upward trend since September 2023, reaching a yearly high of $0.68 in December of the same year.
Despite its upward trajectory, Cardano struggled to break above the key resistance level of $0.58. Instead, it formed six consecutive long upper wicks, indicating selling pressure that pushed the price back below the resistance zone. However, there was a positive development last week as ADA managed to climb above the $0.58 level and close the week above it. This is the highest weekly close since May 2022 and suggests a potential breakout.
Currently, ADA is trading at $0.583, experiencing a drop of nearly 4% in the last 24 hours. This has resulted in a weekly loss of 10% for the 9th-ranked cryptocurrency. ADA is now at a critical point, testing short-term support. If this support is broken, it could lead to a drop to the long-term support level of $0.55. However, a bounce back from this position could indicate strong support from bulls.
The weekly Relative Strength Index (RSI) confirms the bearishness of ADA’s performance. This indicator helps investors determine if an asset is overbought or oversold, guiding their buying or selling decisions.
Experts have expressed optimism about ADA’s long-term outlook. Analyst Ali Martinez predicts that the cryptocurrency could trigger its bull run earlier than expected, with a potential rise to $0.8, a retracement to $0.6, and then a massive 1233% bull run to reach $8. However, Martinez warns that prices could stall for a few months, following the market behavior in 2020. Based on historical patterns, ADA could enter an accumulation phase until April 2024, followed by a bullish breakout targeting the $8 prediction.
For many investors, ADA is considered one of the most promising projects in the upcoming bull market. The project has been focused on development for the past few years, incorporating cutting-edge technology and forming partnerships across various industries. Additionally, ADA has a dedicated community supporting its growth.
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