With the strength of Cardano’s stock price, the price of ADA has recorded an impressive 10.79% increase and is poised to rise above $0.70. The daily chart also shows a potential round bottom, which increases the chances of buyers extending the uptrend.
With the new year rally and improving sentiment surrounding the altcoin season, Cardano is poised for a clear trend reversal. Therefore, our Cardano price prediction remains optimistic as the possibility of a $0.70 breakout increases.
ADA price weekly chart turns on bullish mode
Source – Trading View
On the weekly chart, ADA price is experiencing an increasing number of bullish candles, accounting for 163% in less than 12 weeks. Rebounding from the important support at $0.25, Cardano price approaches the 38.20% Fibonacci retracement level of $0.70.
The altcoin is showing an upward trend after the recent retest, with the $0.60 supply zone being broken and retested by a Doji candle. Moreover, the ongoing weekly bullish candle weakens the high price rejection of the last two candles.
Source: TradingView
Additionally, the growing bullish momentum on the daily chart portends a rounding reversal with a neckline at $0.687. The neckline coincides with the trend-based Fibonacci level of 38.20%, signaling a breakout trend.
The price of ADA, which is currently trading at $0.648, is showing an intraday rise of 2.21% while facing resistance at the neckline. However, daily candles indicate price resistance higher and warn of bullish failure.
If Cardano’s bullish trend continues and the ADA price exceeds $0.70, a breakout rally to $1 is possible. However, after being rejected at $0.70, a decline below $0.60 is possible if the reversal trend gains momentum.
Technical indicators:
EMA: The 50 and 200 EMAs on the weekly chart indicate a positive turn with continued recovery in the ADA price. This increases the likelihood of a golden crossover certifying a trend reversal in a more prominent period.
MACD: Daily MACD and signal lines prepare for a bullish crossover with Cardano’s recent rebound. Additionally, the decreasing phase of the negative histogram supports the possibility of a crossover of the MACD indicator. In case of crossovers, the MACD indicator supports the possibility of a trend reversal.