Cardano (ADA) Price Could Confirm Bottom by Reclaiming This Area
Cardano Price Prediction: ADA has been showing bullish signs since Oct. 21 and would confirm its bottom with a reclaim of the $0.43 area. The post Cardano (ADA) Price Could Confirm Bottom by Reclaiming This Area appeared first on...
Cardano Price Prediction: ADA has been showing bullish signs since Oct. 21 and would confirm its bottom with a reclaim of the $0.43 area.
The Cardano (ADA) price had decreased since Aug. 2021, when it reached an all-time high price of $3.10. The decrease was preceded by bearish divergence in the weekly RSI (black line). It led to a $0.33 minimum price in Oct. 2022.
Afterward, the Cardano price bounced (green icon), validating the $0.36 horizontal area and the bullish divergence in the weekly RSI (green line). Moreover, the weekly RSI broke out from its bearish divergence trend line.
As a result, both the bounce from the price action and the RSI movement suggest higher future prices are in store for ADA. If an upward trend begins, the closest resistance would be at $0.58.
Cardano Price Prediction: Bottom Has Been Reached?
The technical analysis from the daily time frame supports the findings from the weekly one. After breaking down from a symmetrical triangle on Oct. 4, the price of ADA reached a low of $0.33 on Oct. 21. The price action since the breakdown shows a completed five-wave downward movement.
The movement since has been bullish. ADA began an upward movement and reached a maximum price of $0.44 before falling. Afterward, the Cardano price increased once more over the past 24 hours, but the breakout attempt was similarly unsuccessful. The highs validated the $0.43 area as resistance (red icons).
Furthermore, the daily RSI is bullish. It has broken out from a descending resistance line and is now trading above 50.
As a result, the daily time frame readings substantiate those from the weekly chart and suggest that a bullish price reversal is in place.
Short-term Retracement Before Breakout Likely
The increase since the lows looks like a completed five-wave upward movement. If correct, the subsequent decrease is part of an A-B-C structure. In it, ADA is in wave C.
The most likely level for the bottom would be between the 0.5-0.618 Fib retracement support levels at $0.37-$0.38.
Afterward, the continuation of the upward movement and breakout from the $0.43 area is likely.
Conversely, a fall below the Oct. 21 low (red line) of $0.33 would invalidate this bullish Cardano price prediction and suggest that new lows will follow.
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