3 July 2024
Cardano (ADA) has correlated with the broader market, experiencing a retracement from its yearly high of $0.810 in March to as low as $0.357 on June 22. However, ADA has now deviated from the struggles of Bitcoin (BTC) and Ethereum (ETH), exhibiting a 2% increase in the past 24 hours and over 12% in the past two weeks.
Explosive Rally For Cardano
Intriguingly, technical analysts believe that ADA could be on the verge of an explosive rally in the coming weeks, potentially retesting its yearly high and setting the stage for a surge above the $1 mark.
Crypto analyst Captain Fabik points to the confirmed Falling Wedge Breakout on ADA’s daily chart, with the token surpassing the crucial $0.407 price mark on Tuesday.
Fabik predicts a bullish rally of approximately 70% for ADA in the coming months, envisioning a price around $0.704, just below the yearly high.
Echoing this sentiment, optimistic users anticipate a solid bullish rally for ADA, expecting a move toward the $0.80 mark shortly, citing the formed Falling Wedge pattern.
However, not all analysts share the same level of bullishness. Crypto Bullet offers a more cautious perspective. While acknowledging potential price increases for ADA, Crypto Bullet does not foresee new all-time highs in this bull cycle.
Instead, Crypto Bullet suggests that the highest ADA can reach during this cycle is the 0.786 Fibonacci level. The analyst sets macro targets at $1.15 and $1.80, highlighting the current gap of over 86% from ADA’s all-time high of $3.09 during the 2021 bull run.
Bullish Sentiment Surrounds ADA
Cardano (ADA), currently boasting a market capitalization of $14.6 million, shows further technical indicators on its daily chart, suggesting a bullish continuation of the current uptrend.
Market expert Jesse Olson highlights the pending buy signal on the daily chart of ADA, accompanied by bullish targets set for the token.
Indicators signaling this bullish sentiment include a bullish divergence, a buy signal on the Relative Strength Index (RSI), and a bullish crossover on the Moving Average Convergence/Divergence Indicator (MACD).
Analyzing the chart, Olson predicts a continuous climb for ADA’s price, initially targeting the $0.470 mark, followed by a move just below the $0.550 level. According to the analysis, the ultimate price target is $0.650.
However, despite mounting bullish predictions, several resistance levels remain to be overcome. As ADA currently trades at $0.415, the token faces its first challenge at the $0.418 mark in weeks.
On its path to the $0.600 level, Cardano’s native token will encounter key resistance walls at $0.438, $0.503, $0.517, and $0.590. The ADA must overcome these notable hurdles to reclaim previously lost levels.
As the bullish sentiment grows, attention turns to the upcoming Chang upgrade, which is set to deploy a new set of governance features to Cardano.
This upgrade aims to unlock the final features of on-chain governance, including delegated representative participation and treasury withdrawals. The impact of these developments on ADA’s uptrend remains to be seen.
Featured image from DALL-E, chart from TradingView.com