2023-4-3 14:07 |
The Cardano (ADA) price is attempting to break out from the $0.410 resistance area. If successful, this would have massive bullish implications for the future price.
ADA is the native coin of the Cardano blockchain platform. The ADA coin price has increased since the beginning of the year. On Feb. 16, it reached a new yearly high of $0.421. Initially, it seemed that the high caused a breakout above the $0.410 resistance area. This is a crucial area that has acted as both resistance and support since May 2022.
However, the price failed to break out, instead deviating above the area and falling afterward.
Nevertheless, the ADA price is in the process of making another breakout attempt. This is also supported by the RSI, which broke out from its bearish divergence trendline and is above 50.
If a breakout occurs, the ADA price can increase to the next resistance at $0.560. However, if another rejection follows, ADA could fall to $0.325.
ADA/USDT Daily Chart. Source: TradingView Will Cardano (ADA) Price Finally Break Out?The technical analysis from the short-term six-hour chart shows that the price has increased inside an ascending parallel channel since March 10. Such channels usually contain corrective structures. Moreover, the movement inside it has been extremely choppy, which is another sign of a bearish structure.
As a result, this would suggest that the increase is the B wave in an A-B-C corrective structure. If so, the C wave will cause a breakdown and take the ADA price toward $0.280.
However, the bullish outlook from the daily time frame puts this bearish wave count in doubt. Therefore, if the ADA price breaks out from the channel (and the $0.410 resistance in the process), it would invalidate the bearish outlook and cause an increase toward the $0.560 resistance. So, the next 24 hours could be crucial in determining the future trend.
ADA/USDT Six-Hour Chart. Source: TradingViewTo conclude, the ADA price’s long- and short-term readings provide conflicting signs. Whether ADA breaks out above the $0.410 area or gets rejected will likely determine the future trend. A breakout would likely lead to a pump toward $0.560, while a rejection could lead to a fall to $0.280.
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The post What Cardano (ADA) Price Must Do to Trigger a 40% Bull Rally appeared first on BeInCrypto.
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