The Cardano (ADA) price is in the process of creating its eighth bullish candlestick this week.
ADA broke out from a long-term horizontal resistance area during the upward movement. How long will the increase continue?
Cardano Breaks Out From 430-Day Resistance Level
The weekly time frame technical analysis shows that the ADA price has increased swiftly since October. It is in the process of creating its eighth bullish weekly candlestick in a row.
The upward movement culminated with a high of $0.50 today. This is a new yearly high and the highest ADA price since September 2022.
Additionally, it caused a breakout above a long-term horizontal resistance area, which had been in place for 430 days.
ADA/USD Weekly Chart. Source: TradingView
Market traders use the RSI as a momentum indicator to identify overbought or oversold conditions and to decide whether to accumulate or sell an asset.
Readings above 50 and an upward trend indicate that bulls still have an advantage, whereas readings below 50 suggest the opposite.
The weekly RSI is increasing and is above 50, both positive signs. Additionally, it has crossed into overbought territory (green icon). The previous time the RSI moved into overbought territory (green vertical trend line) preceded a sharp upward movement that led to the ADA price all-time high.
Cardano (ADA) Price Prediction – Is $1 Attainable?
The technical analysis from the daily time frame supports the ongoing ADA upward movement because of the wave count and the RSI movement.
Technical analysts utilize the Elliott Wave theory to ascertain the trend’s direction by studying recurring long-term price patterns and investor psychology.
The most likely wave count suggests that the ADA price is in wave three of a five-wave upward movement.
Making wave three 2.61 times the length of wave one gives a target of $0.70. A 40% ADA price increase is required to reach it.
The daily RSI supports this increase since it broke out from its bearish divergence trend line and is moving upwards.
ADA/USDT Daily Chart. Source: TradingView
Despite this bullish ADA price prediction, a decrease below the wave one high (red trend line) at $0.38 will mean the increase was corrective. The ADA price could fall 40% to the next support at $0.30.
How to Stake Cardano? A Complete Guide for Beginners – YouTube
For BeInCrypto’s latest crypto market analysis, click here.
