Analyst Says Cardano Must Break This Level to Confirm Uptrend to $1: ‘ADA Market Structure Looks Promising’
Following years of lackluster price action and stagnating development, signs of a potential trend change are emerging for Cardano (ADA). Both chart analysts and market experts have taken notice of recent bullish moves for the long-criticized blockchain project, with some now calling for a run toward the symbolic $1 mark.
What you'll learn 👉
Bullish Market Structure Takes Shape
According to crypto YouTube analyst CryptoBusy, Cardano’s market structure has strengthened considerably in recent weeks. With ADA breaking decisively above the multi-year resistance around $0.55, the path looks clear for prices to ascend in a new uptrend. Immediate upside confirmation above $0.67 would solidify this viewpoint.
If breached, CryptoBusy’s analysis suggests little stands in the way of a rapid recovery back toward range highs around $1. With investor sentiment showing early signs of rotating back in favor of left-behind altcoins like ADA, the environment may prove ripe for such an explosive move.
Key Resistance Breach Opens Door for Continuation
Expanding on the recent price action, algorithmic analysis by data platform altFINS identifies a bullish breakout from a technical downtrend channel that constrained Cardano for most of 2022. Their initial upside target of $0.65 – which would mark a 17% gain – was swiftly met.
Now, traders must wait for validation above formidable resistance at $0.68 to signal sustainable upside follow-through. Alternatively, a pullback to $0.46 would present another attractive swing trade entry point, according to altFINS. But across all timeframes, the trend reads as definitively bullish.
With positive momentum also confirmed via technical indicators like the MACD and RSI, the indications for further continuation after a healthy pullback appear in place.
Doge2014 raises 500K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +Overbought Conditions Could Fuel Further Momentum
Adding context to the recent surge, Cardano’s daily relative strength index (RSI) now prints at an elevated 71 reading. This signals extremely overbought conditions in the short-term that often precede minor pullbacks.
However, for longer-term trend traders, high daily RSI levels often mark the early stages of new uptrends rather than tops. The theory goes that the most explosive upside moves start at levels where weak hands have already sold out, leaving only committed bulls.
If ADA manages to consolidate around current levels rather than crash sharply lower, the technical base would strengthen considerably. Some investors also specifically target tokens with a daily RSI above 70 that show signs of holding up.
Traders well-versed in past crypto market cycles can recall the ferocity of altcoin upside when investor sentiment shifts aggressively. In those conditions, technical and on-chain analytics provide the blueprint, but extreme underlying moves dwarf even exaggerated price targets.
You may also be interested in:
- Kaspa’s KAS Token Soars to New Heights, Surpassing Cosmos (ATOM) and Theta (TAO)
- Filecoin (FIL) Eyes Tripling to $25 as Technicals Turn Bullish and Solana Partnership Catalyzes Growth
- The 5 Best Altcoins to Watch in February 2024: Which Altcoin Will Explode in 2024?
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
