Cardano (ADA) has been relatively quiet on the development front in recent months. There have been no major protocol upgrades, product launches, or partnership announcements from the Cardano team since early 2022. Despite founder Charles Hoskinson’s ambitious roadmap, there has been somewhat of a lull in terms of headline-grabbing news around Cardano compared to competitors like Ethereum, Solana or Polkadot. Some critics have suggested Cardano is struggling to ship promised capabilities like smart contracts.
The lack of buzzworthy updates has resulted in ADA trading mostly sideways for much of 2022, with price action closely tracking Bitcoin. With little in the way of fundamental drivers, traders have been focused more on technical analysis to predict Cardano’s next potential price move.
After a significant drop to its $0.25 support, Cardano (ADA) has exhibited a steady recovery, charting a path within an Ascending Triangle pattern. This pattern typically signals a continuation of the existing trend. ADA’s bullish breakout from the pattern, breaking past the $0.30 resistance mark, signals a resumption of an uptrend, indicating a potential rise to the $0.40 mark. The price is currently undergoing a retest at the $0.30 breakout point — a significant indicator for traders to set a price alert.
This Ascending Triangle, recognized as a continuation pattern, usually breaks out in the direction of the existing trend. Although most traders wait for a breakout, swing traders may find opportunity trading between the trendlines (Buying at Support, Selling at Resistance) as long as the trendlines are sufficiently far apart.
ADA’s price trend on a short-term basis indicates an uptrend, while medium-term prospects remain neutral, and long-term observations suggest a downtrend. Momentum remains mixed with the MACD Line positioned above the MACD Signal Line, signaling bullish sentiments. However, the RSI hovers around the 50 mark, pointing towards neutrality. Additionally, the declining MACD Histogram bars hint towards weakening momentum.
In terms of support and resistance, the nearest support zone is set at the $0.30 mark (the previous resistance), followed by $0.25. Meanwhile, the closest resistance zone is at $0.40, followed by $0.45.
Going back to the start of July 2023, ADA’s price stood at approximately $0.29. The predicted maximum price for ADA within this month is expected to reach around $0.38, with the minimum price falling to approximately $0.27. The average price for the month is predicted to hover around the $0.31 mark.
By the end of July 2023, ADA’s price is predicted to settle at about $0.30. This suggests a change of 3.4% for the month, offering an optimistic outlook for the rest of the summer.
This period promises to be a decisive one for Cardano (ADA), with potential bullish movements on the horizon. As the markets continue to evolve, it will be critical for investors and traders to keep a close eye on these developments.
