The native cryptocurrency of the Cardano blockchain, ADA, has seen its price rally over 8% this week to currently trade around $0.5. This gains momentum comes on the back of a positive technical analysis noted by renowned crypto analysis platform Coinpedia.
As per Coinpedia’s Cardano trading analysis on TradingView, ADA has been exhibiting a bullish reversal within a falling wedge pattern over the past few weeks. This falling wedge pattern signals a potential bullish trend going forward. Adding to this, ADA registered an impressive overnight surge of 7% a few days ago, resulting in a bullish engulfing candlestick formation. As Coinpedia notes, “this signifies strong buying interest has emerged.”
Another encouraging sign highlighted is that if ADA is successful in breaking above the overhead trendline of the falling wedge, it could look to reclaim the psychologically important $0.65 resistance level. The analysis states “if ADA successfully breaches the overhead trendline, it could reclaim the crucial $0.65 level.”
Additionally, the broader recovery seen across the crypto markets has been fueling Cardano’s price action positively. As Coinpedia observes, “the broader crypto market’s bullish path bolsters ADA’s prospects for a decisive breakout.” Based on the current momentum, they anticipate ADA could be poised for a 25% price run in the coming week alone.
In the longer term view as well, despite experiencing short-term volatility, Coinpedia maintains that “the long-term outlook for ADA remains positive.” One key support factor they noted was ADA bouncing off the 50% Fibonacci retracement level and support trendline, strengthening the case for ongoing gains going ahead.
Some other technical indications like rising trading volumes and positive market sentiment are also seen as important drivers that could help catalyze ADA’s potential breakout move according to the analysis. It is also viewed in a positive light that ADA has successfully surpassed the 50-day exponential moving average (EMA), solidifying its bullish stance.
At the time of writing this article, Cardano is trading near the resistance trendline at around $0.527, indicating a crucial juncture for its future directional bias according to Coinpedia. Additionally, the crossover of the moving average convergence divergence (MACD) indicator’s bullish signal lines suggests growing positive momentum building up for ADA.
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Show more +While an upside breakout seems likely as per the technicals, Coinpedia also cautions that a sudden trend reversal could see ADA drop back down to retest support at the 50% Fibonacci retracement level.
To summarize, going by Coinpedia’s comprehensive Cardano price analysis, signs point towards an impending bullish breakout for ADA above its overhead resistance if the recent bullish structure holds steady.
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