Cardano [ADA] navigates through recovery process; eyes 20% upswing

Over the holiday weekend, the global cryptocurrency market along with Cardano [ADA] which posted a weekly recovery of 18.67%.

As the year drew close, several top cryptocurrency assets have climbed significant levels and showed bullish momentum. Cardano wasn’t an exception either. In fact, after a prolonged sluggish price action, Cardano [ADA] depicted an optimistic outlook. The sixth-largest cryptocurrency by market cap was up by 2.50% over the past day which catapulted its price to $1.46. At the time of writing, ADA recorded a market cap of $48.68 billion and a 24-hour trading volume of $1.06 billion.

After sustaining a bullish reversal, ADA was now eyeing for almost 20% ascent and this is what the chart reveals-

Cardano [ADA] Daily Price Chart:

As a result of November blues, ADA was trapped inside the trendlines of a descending channel. However, over the past weekend, the asset recovered significantly and finally underwent a bullish breakout. During the first leg up, ADA breached a crucial resistance level of $1.41. The diverging Bollinger Bands [BB] depicted incoming volquireatility which may help the asset to target its next ascent. 

Meanwhile, the simple moving averages – 50 SMA [Pink] and 200 SMA [Yellow] continued to hover above the price candles while the trading volume remained unimpressive. 

ADA Target Points- What’s next?

The green closing bars of Awesome Oscillator [AO] depicted a bullish momentum in the market. The MACD also aligned with the bulls while the daily Relative Strength Index [RSI] climbed above the 50-median line as buying pressure increased. 

As selling pressure took a hit, Cardano may target more upswings. In that case, the immediate resistance level of $1.72 appears to be the target, which would require almost 20% ascent. If ADA manages to reclaim this level, strong resistance levels of $2.27 and $2.69 will come into play. Besides, the support points stood untested at $1.05 and $0.83 respectively. 

Cardano reached an all-time high this year, a fact that coincided with the much-awaited Alonzo upgrade, in the first half of September. As a result, the upgrade gained a lot of traction from the community and acted as a catalyst driving its price up to a huge extent. While prices started to fall shortly thereafter, the current recovery rate is noteworthy. Nevertheless, 2021 has been a very important year for the entire ecosystem. The upgrade helped the blockchain accommodate the rapidly evolving space of decentralized finance [DeFi] and non-fungible tokens [NFTs]. Hence, the next year may see ADA targetting more highs. 

Chayanika - Chayanika has been working as a financial journalist in the cryptocurrency and blockchain industry for almost three years. She has closely followed the growth and adoption of the sector since 2018. Her inclination lies in writing impactful, data-driven stories.