Crypto's Cardano (ADA) Price Surges under Bullish Trends with Aspirations for $1.02 Peak
Cardano (ADA), the eighth-largest cryptocurrency by market capitalisation, has seen a significant price increase in recent days, trading at $0.84 at the time of writing on Monday. This surge appears to be driven by growing investor confidence in the long-term technical resilience and structural setup of Cardano, as well as anticipation of upcoming upgrades and partnerships strengthening its ecosystem.
The immediate resistance for ADA is between $0.83 and $0.85, with the 50-day Simple Moving Average at $0.83 acting as a horizontal barrier. A decisive move above the $0.85 resistance could trigger advancement toward the $0.92 Fibonacci level, which is also the 61.8% Fibonacci retracement level.
The price of ADA has rebounded from key support at around $0.77 on September 1, with this level serving as a strong support earlier this year. Key support can be found at $0.77 where the 100-day EMA currently sits, and deeper support exists at $0.72 (the 200-day SMA) and $0.62 as additional safety nets. Failure to maintain current levels risks a pullback to the $0.77-$0.72 zone.
The Relative Strength Index (RSI) for ADA on the 4-hour chart is currently at 58, indicating building bullish momentum. This is further supported by the Moving Average Convergence Divergence (MACD) for ADA, which has displayed a bullish crossover on the 4-hour timeframe.
The OI-Weighted Funding Rate for ADA is currently 0.0079%, indicating increased bullish sentiment among traders. The ADA stablecoin market capitalization has reached an all-time high of $40.37 million, further suggesting a positive outlook for the cryptocurrency.
It's worth noting that Bitcoin's stability above $110,000 is providing favorable conditions for altcoins like ADA. If momentum carries forward, ADA could potentially reach $1.00 and $1.02. However, it's important to remember that the cryptocurrency market is volatile, and these predictions should be treated as speculative.
In conclusion, the short-term outlook for ADA hinges on its ability to clear the $0.85 resistance. If it does, ADA could potentially target $0.92 in the short term. However, failure to maintain current levels risks a pullback to the $0.77-$0.72 zone. As always, investors are advised to do their own research and consider their risk tolerance when making investment decisions.
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