While the broader crypto market experienced a resurgence this week, with meme coins like SHIB and DOGE, as well as heavyweights like SOL and ETH, surging by around 10% or more, Cardano’s ADA price remained relatively flat, posting a modest 2% gain. However, a closer examination of the ADA/USD chart reveals that ADA’s price has been trading within an ascending channel since the bull run commenced in October of the previous year.
The Moving Average Convergence Divergence (MACD) indicator, a widely used technical analysis tool, currently shows the MACD line above the MACD signal line, indicating a bullish trend. This signifies that the 12-day Exponential Moving Average (EMA) is higher than the 26-day EMA, suggesting that the upward momentum in ADA’s price could persist.
Additionally, the Relative Strength Index (RSI) stands at 63, which falls within the bullish range, indicating that ADA is neither overbought nor oversold, and the uptrend has room to continue.
If ADA’s price remains within the confines of the ascending channel, without any significant pumps or crashes, it could potentially reach its all-time high of around $3 by late 2025. Currently trading at approximately $0.64, ADA would need to surpass crucial resistance levels at $2.05 and $2.32, which align with the 3.236 and 4.236 Fibonacci extension levels, respectively, before breaching its previous record high.
The 20-day Exponential Moving Average (EMA20) for ADA presently stands at $0.56, acting as a potential support level in case of minor price corrections. Moreover, if a more substantial pullback were to occur, the $0.47 level, which coincides with the 200-day moving average, should provide robust support for ADA’s price.
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Show more +Looking ahead, if ADA can maintain its position within the ascending channel, the path towards its all-time high appears promising. However, investors should closely monitor the development of the broader crypto market, as external factors could potentially influence ADA’s trajectory. Nonetheless, Cardano’s blockchain continues to expand, and its community remains dedicated to driving innovation, which could further propel ADA’s price in the long run.
Alternatively, if ADA were to break out of the ascending channel, either upwards or downwards, it could signal a significant shift in market sentiment. An upward breakout could potentially accelerate ADA’s ascent, while a downward breach could trigger a more substantial correction. In either scenario, traders and investors should remain vigilant and adapt their strategies accordingly.
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