Cardano (ADA) is currently showing bullish signs on its daily chart, as per recent analyses by well-known analysts. Jesse Olson and Captain Faibik both point out significant technical indicators that suggest an imminent upward movement for the cryptocurrency. This positive outlook comes at a time when Cardano’s price is displaying resilience and potential for substantial growth.
Pending Buy Signal and Bullish Divergence
Jesse Olson notes that the daily chart for Cardano (ADA) against USDT indicates a pending buy signal, signaling a potential upward price movement. A noticeable bullish divergence is also present, with the price of ADA reaching new lows while indicators like the RSI and MACD are registering higher lows. This divergence typically indicates a weakening bearish momentum and a possible trend reversal. The RSI, currently moving away from the overbought region, also suggests a potential bullish crossover, indicating that ADA might be undervalued and ready for an upward momentum. Additionally, the MACD indicator shows a bullish crossover, with the MACD line crossing above the signal line, signaling a shift from bearish to bullish momentum.
Resistance Levels and Trendline Break
Further analysis of the chart reveals several resistance levels between $0.45 and $0.65, which could serve as potential target zones for a price increase. There is also a descending trendline on the chart that ADA is attempting to break above. A successful break of this trendline could indicate a shift from the current downtrend to an uptrend, further supporting the bullish outlook.
Falling Wedge Breakout and Expected Rally
Captain Faibik’s analysis confirms a falling wedge breakout for ADA, a bullish reversal pattern that often leads to significant upward price movements. The breakout suggests the end of a prolonged consolidation phase, indicating strong bullish momentum ahead. Captain Faibik projects a potential +70% rally, with price targets in the $0.90 to $1.00 range. This is in line with the typical performance following a falling wedge breakout, which often results in substantial price increases.
As of June 2, various entities have shared their opinions on Cardano’s potential long-term price trajectory. Currently trading at $0.4159, a 7% increase from the previous week, ADA is far below its all-time high of $3.10 reached in September 2021. However, platforms like Changelly are optimistic about ADA’s future, projecting that it could reach $100 by 2040, $300 six months after reaching $100, and $500 by 2050. Achieving these milestones would require ADA to grow significantly, with market valuations reaching new heights.
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