The Cardano (ADA) price regained its footing on Feb. 13 and is currently attempting to break out above the $0.425 resistance area.
ADA is the native coin of the Cardano blockchain platform, created by Charles Hoskinson. The Cardano price broke out from a descending resistance line in the second week of January. After validating the line as support (green icon), it continued the increase that is still ongoing.
On Feb. 1, the ADA price reached a new yearly high of $0.421. But despite the increase, it has not broken out from the $0.425 resistance area yet. This is a crucial area since it has intermittently acted as both support and resistance since May 2021.
Whether the Cardano price breaks out or gets rejected could determine the future trend’s direction. A successful breakout could catalyze an increase to the next resistance at $0.56.
Since the weekly RSI is above 50, a breakout is slightly more likely.
Is the Cardano (ADA) Price Correction Complete?
The technical analysis from the short-term six-hour chart supports the continuation of the upward movement. While ADA broke down from an ascending wedge on Feb. 9, it bounced at the 0.382 Fib retracement support level four days later.
Then, ADA began what looks like an impulsive upward movement.
Therefore, the continuation of the increase is the most likely scenario. If a breakout occurs, the ADA price could increase to $0.58.
However, if a drop below the 0.382 Fib retracement support level occurs, ADA could fall to the 0.5 Fib support at $0.326 could follow.
To conclude, the most likely Cardano price forecast is a breakout above $0.425, which could lead to a jump to $0.580. However, a decrease below $0.346 would invalidate this possibility and could lead to a drop to $0.326 and possibly lower.
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