According to Trend Rider, Cardano (ADA) might be poised for a significant upward trend. The analyst pointed out a positive pattern between two key moving averages, suggesting good prospects for ADA in the long term. They also noted similarities to a previous surge in ADA’s price, from $0.11 to $3.00.
CoinMarketCap data reveals that ADA’s remarkable surge from $0.11 to $3 unfolded between December 2020 and September 2021, spanning approximately 10 months. Considering this timeline, it’s possible that a similar bullish pattern could lead to another substantial increase in ADA’s value, albeit over a similar duration.
ADA/USD Daily Chart Analysis: Potential Upside Towards $0.70
Analysis of the ADA/USD daily chart suggests a positive market sentiment that could drive the price towards $0.70. However, the short-term outlook indicates potential resistance around $0.65, hindering a breakthrough.
Currently trading at $0.59, ADA faces a notable resistance at $0.60. A failed attempt to surpass this zone could lead to a decline towards $0.55. Conversely, a successful close above $0.60 might pave the way for a retest of $0.68.
Notably, the 50-day Exponential Moving Average (EMA) has crossed above the 200-day EMA, forming a golden cross. This pattern typically signals a bullish breakout, suggesting potential for ADA’s price to rise significantly in the long run.
ADA/USD Daily Chart (Source: TradingView)
ADA Price Forecast: Potential Upside to $1.18 Amid Market Optimism
Amid prevailing market optimism, ADA could potentially surge by another 100% within the next few months, reaching a price target of $1.18. However, if bearish sentiment dominates, ADA’s price may stagnate or continue trading within the range of $0.55 to $0.60.
Currently, the Moving Average Convergence Divergence (MACD) on the ADA/USD 4-hour chart indicates a pause in bullish momentum, with the MACD dropping into negative territory. Additionally, the 12 and 26 Exponential Moving Averages (EMAs) are trending downwards, suggesting a potential bearish trend. If this downward momentum persists, ADA could retest support at $0.54, corresponding to the 0.236 Fibonacci level.
ADA/USD 4-Hour Chart (Source: TradingView)
On the other hand, a closer look at the Fibonacci retracement indicator reveals the potential for further upside in ADA’s price. If buying pressure resumes, ADA may experience a 13% increase, pushing its price towards $0.68, aligned with the 4.236 Fibonacci level.
Important:Ā Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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