Cardano (ADA) has been rising since July 20th, managing to break its downtrendline on Tuesday (10).
While the uptrend is still intact, with no signs of weakness, the ADA needs to stay above the $1.75-$1.83 zone to reach higher tops.
ADA breaks resistance
The ADA has been rising since July 20, after fundraising at $1.02. Initially, the move stalled after hitting the $1.45 resistance area on Monday (9). This level also coincides with a downtrendline.
However, the ADA managed to break this resistance the next day, creating a large bullish candlestick that caused the above mentioned trend line to break. So far, it reached a high of US$ 1.77 this Wednesday morning (11).
Technical indicators on the daily chart are bullish. The MACD is positive, the RSI crossed above 70 and the Stochastic Oscillator is rising. The closest resistance is found at $1.83.
Cardano’s future movements
The six-hour chart further supports the daily chart’s outlook. The 0.5 Fibonacci retracement level when measuring all bearish movement is found at $1.75 (white).
If the entire motion is an ABC (black) structure, the A:C waves will likely form at a ratio of 1:1.61. This could drive the asset up to $1.81. However, the structure is not yet confirmed.
Similar to the daily period, technical indicators are not showing any signs of weakness in the move, even though the RSI is overbought. If the currency cannot overcome this resistance, the $1.47 area will likely act as price support.
Cryptocurrency trader @CryptoMichNL has charted for the ADA/BTC pair, stating that the asset needs to settle above the 3,600 satoshi resistance area before it can actually start a strong bullish move.
Unlike the ADA/USD pair, it appears that the BTC pair still follows a bearish trendline. This line is currently near 4,000 satoshis, coinciding with the 0.5 Fibonacci retracement level.
Technical indicators in the daily period are bullish. The Stochastic Oscillator made a bullish signal, the RSI moved above 50 and the MACD almost crossed into positive territory. However, until it manages to break through the horizontal and diagonal resistance levels, the trend cannot be considered bullish..
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