The price of Cardano has been breaking through a major resistance on the monthly time frame. Rekt Capital made this update on Wednesday.
The last time the price reached this level, eight months ago, it triggered a major bearish decline of more than 60%. Now that the price is breaking above this level again, we need to see a close above the resistance for the chance of a major rally.
Based on Rekt Capital’s analysis, the $0.72 level, which is the black line in the chart, must hold as strong support for Cardano’s ADA price to start a new uptrend.
On the other hand, if the price fails to close above this level, we could see a decline to around $0.24, which is where the next support lies on the monthly timeframe.
Possible Retracements Following Strong ADA Rally
Looking at the daily timeframe, Cardano’s price has been breaking new heights with a close to 150% increase in the past 2 weeks. The price reached $0.84 yesterday, which was the first time since May 2022, 30 months ago.
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As the price continues to break new heights, traders will need to be on the lookout for possible retracements and strong resistance that could affect short- and medium-term rallies.
Currently, the Relative Strength Index is at 80, which also shows that the price is overbought. This could also be interpreted as a pullback being on the way to the nearest support levels.
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