ADA price has rebounded from its June lows at $0.23 and is currently experiencing a bullish wave. The token, with a market capitalization of $8.8 billion, has risen by 2.5% on Friday to reach $0.2527. Despite concerns about inflation indicated by the US Consumer Price Index, the overall outlook for the crypto market remains bullish.
Cardano’s price is on the verge of a breakout after finding support at $0.23 and the middle boundary of a falling channel. The bulls are now attempting to overcome resistance at the upper boundary in order to push for gains above $0.26.
The MACD indicator supports this bullish outlook, suggesting that a rally to $1 is the most likely outcome if market sentiment continues to improve.
Traders may want to wait for the resistance at the descending channel to weaken before entering new long positions to avoid potential bull traps.
Although a breakout to $1 is anticipated, it may take longer to materialize due to low liquidity and trading volumes. Key milestones to watch for during ADA’s climb include the resistance/support areas highlighted by the 50-day, 100-day, and 200-day Exponential Moving Averages (EMAs) at $0.2701, $0.2891, and $0.3202, respectively.
In the short term, the MACD on the four-hour chart indicates a strong buy signal, and ADA price is currently above the support provided by the 50-day EMA at $0.2506. However, the 100-day EMA at $0.2544 may cause a delay in the upward movement towards $0.26 and subsequently $0.3.
The Supertrend indicator trailing ADA price further supports the bullish momentum for the next Cardano rally. Additionally, a 61.8% retracement is expected from $0.23 to a resistance level formed by the 200-day EMA and the 61.8% Fibonacci level at $0.2634.