While long-term readings support Cardano (ADA) price continuation, short-term readings remain uncertain.
ADA is the native token of the Cardano blockchain platform. The weekly time frame shows that ADA price broke out from a long-term bearish resistance line in January 2023. The line has been in place since the all-time high set in August 2021. As a result, a breakout from it is expected to lead to a significant upward movement.
However, while the price of the ADA token validated the line as support in March 2023, the sharp rally has yet to begin. On the contrary, the price is still trading below the $0.390 horizontal resistance area. Moreover, the weekly RSI is facing resistance at 50, which is another sign that the trend is not confirmed as bullish yet.
If the ADA price breaks, it could rise to the next resistance at $0.580. However, if it is rejected again, it could drop to $0.300. A look at a lower time frame is required to determine if the ADA price will break out or not.
Why isn’t Cardano (ADA) price exploding?
Technical analysis from the daily time frame does not provide a clear prediction for the price of Cardano. Despite the setback in February when the price failed to breach a crucial resistance level, ADA price failed to break above the $0.410 resistance area. Although the RSI supports the increase, the breakout has yet to materialize.
If the breakout is successful, ADA could reach an average price of $0.560, but if it is rejected again, the price could drop to $0.325.
Finally, according to the short-term 6 hours chart, ADA price has been rising inside an ascending parallel channel since March 10th. This type of channel usually includes structures that eventually lead to faults. The price action has been erratic, indicating a bearish structure.
As a result, the price increase that occurred over the past month may be wave B in a corrective structure. If this scenario is correct, then wave C will lead to a breakdown. This could cause ADA price to drop to the $0.280 support.
On the other hand, if ADA price breaches the channel and surpasses the $0.410 resistance, it will invalidate the bearish view and result in an increase towards the $0.560 resistance. Therefore, the next 24 hours will be crucial in determining the future trend.
In conclusion, the most likely Cardano price prediction is for a breakdown from the channel and a decline to the next nearest support near $0.280. A breakout from the channel and $0.410 area will invalidate the bearish expectations. In return, it could cause a pump to $0.560.
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Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
