Cardano (ADA) has recently experienced a string of bullish weekly candlesticks, surpassing resistance levels and generating a positive outlook among investors. Many anticipate that ADA will surpass $1 before the year comes to a close. Cardano has been impressing with its performance in recent months, following a bullish trajectory that could lead to a new all-time high. This aligns with the overall crypto market trend led by Bitcoin (BTC). Notably, various readings and technical signals indicate a continued increase in price. However, there are significant risks if the altcoin falls below key support levels.
Data analysis reveals that after six attempts, ADA’s price finally closed above a long-term resistance area last week. This marks the highest weekly closing since May 2021 and potentially signals the beginning of a new long-term bullish cycle. Looking at the weekly timeframe, ADA has been on an upward trend since September 2023, reaching a yearly high of $0.68 in December 2023.
Despite the upward trend, Cardano (ADA) struggled to break through the crucial resistance level of $0.58. Instead, it formed six consecutive long upper wicks, indicating selling pressure that pushed the price below the resistance zone. However, there was a positive turn last week as ADA managed to surpass the $0.58 level and close the week above it. This marks the highest weekly closing for ADA since May 2022, suggesting a potential breakout.
At the time of writing, ADA is currently trading at $0.583, experiencing a nearly 4% drop in the last 24 hours. This extends the weekly losses to 10% for the 9th-ranked cryptocurrency. ADA is now at a critical point, testing short-term support. If this support is broken, it could trigger a decline to the long-term support at $0.55. However, a rebound from this position could indicate strong support from bulls.
The performance of ADA confirms the bearishness of the weekly Relative Strength Index (RSI). This indicator helps investors determine whether an asset is overbought or oversold, guiding them on whether to buy or sell.
Experts remain optimistic about the long-term outlook for ADA. Crypto analyst Ali Martinez predicts a bullish run earlier than expected, with ADA potentially rising to $0.8, retracing to $0.6, and then experiencing a massive 1233% surge to reach $8. However, the analyst warns that prices could stagnate for a few months, following the market behavior observed in 2020. Based on the pattern at that time, ADA could remain in an accumulation phase until April 2024, followed by a bullish breakout targeting the predicted $8 price.
ADA is considered one of the most promising projects in the upcoming bull market by many investors. The project has been focused on development for the past few years, boasting cutting-edge technology, widespread adoption, and partnerships across various industries. It also benefits from a dedicated community of supporters.
