Cardano price analysis: ADA/USD pair to break above the $1 resistance in the near term?

Towards the closure of yesterday’s Cardano price analysis, the market traded negatively; however, when today’s chart opened, the bulls came in large numbers and were more strategic, causing ADA/USD price to surge in a rising wedge trend. The market is currently trading at $0.815 after placing a high of $0.839 and a low of $0.78. As seen over the 4-hour chart, the price breached the upper boundary of the ascending channel but was unable to sustain above it and thus fell back inside, which suggests that the market currently lacks buyers.

The 20 and 50 periods EMA are currently expanding apart, which indicates that the market momentum is high. The RSI indicator is currently at 58 levels with no extremities, suggesting a consolidation phase in the ADC/USD market.

The Cardano price has been trading above the 20-day EMA for the past few days. The price is expected to continue its upward move and hit the target of $1 in the next few days.

Source: Coin360

The overall outlook on the heat map is bearish. The largest digital asset is down 2 percent, while its closest competitor ETH records a decline of 3 percent. Cardano is down by 2 percent, trading at $0.813. altcoins are bleeding today; however, things might turn out well in the evening.

Cardano price movement in the last 24 hours: ADA/USD set to spike higher today

ADA/USD pair has traded in head and shoulder trends for most of the day.  The pattern has a bearish bias, and a breakdown below the neckline support could see prices decline to test the next support near $0.75. The 100 SMA also points to the south, which means that the path of least resistance is to the downside.

Source: Tradingview

The Bollinger bands are wide on the daily chart, suggesting that the volatility is high. The price has broken out of the upper Bollinger band, a bullish sign.

Cardano prices have been on a roller coaster ride over the past 24 hours. The price has broken out of the upper Bollinger band, indicating that it could continue its upward momentum in the near term. Traders should be cautious as the price is below the 20-period moving average.

Overall, Cardano has a lot of potential in the near term and could be a good investment option for traders looking to capitalize on short-term price movements. However, it is important to keep an eye on the price action at higher levels to avoid any sharp pullbacks.

ADA/USD four-hour chart: Indicators are bullish on ADA

The four-hour Cardano price analysis chart indicates that the price is trading along a rising support line. Stochastic points to higher lows for Cardano. ADA/USD needs to break above $0.85 to set bullish pressure and increase the price, likely to $1.

Source: Tradingview

On the other hand, if the price breaks below the ascending support line, it would invalidate the bullish outlook and could drop to $0.760.

The latter scenario can take Cardano towards the next resistance at $0.90 and even further to $1. The RSI (Relative Strength Index) is currently trading in the overbought territory, which usually indicates that the price may be due for a correction.

The MACD (Moving Average Convergence Divergence) indicator also shows signs of a bullish crossover, leading to further gains in the ADA/USD pair.

Cardano price analysis: Conclusion

Overall, Cardano price analysis is looking bullish, and traders can continue to hold their long positions with a stop-loss just below the rising support line. However, if the price fails to break above $0.85 and instead breaks down, there could be a short-term correction towards the $0.70 level. Investors should remain cautious and keep a close eye on the price action in the near term for signals of a potential reversal.