Cardano’s Price Movement: A Complex Prognosis During Resistance Battle

Altcoin Cardano’s (ADA) recent price movement paints a nuanced picture as it struggles with long-term resistance, also raising concerns about the sustainabil

by V. Sinclair January 9, 2024

written by V. Sinclair January 9, 2024 0 comment

Decentraclasses X AlgoBhart.pdf – 2024-01-09T072940.797

Altcoin Cardano’s (ADA) recent price movement paints a nuanced picture as it struggles with long-term resistance, also raising concerns about the sustainability of its upward trend. The failure to surpass a significant resistance level at $0.68 led to the formation of a notable bearish candle, prompting a reassessment of ADA’s trajectory.

Weekly Outlook: ADA Coin’s Journey

Altcoin ADA has remained within the $0.25 to $0.43 range since October 2022, covering a 59-week period. A breakthrough above this range was marked by a challenging bullish candle, indicating a potential shift in control towards the bulls and the start of a new long-term uptrend. Despite this optimistic outlook, ADA encountered resistance at the $0.68 level, casting a shadow over the continuous upward momentum.

The weekly Relative Strength Index (RSI) has fallen below the critical level of 70 and is trending downwards, signaling a potential decrease in bullish strength. As a result, the ADA price may be subject to further adjustments and could head towards the familiar resistance at $0.42.

Bullish Divergence Signals on the Four-Hour Chart

While the weekly analysis casts a cautious light on ADA’s direction, the 4-hour chart reveals some interesting bullish signals. Both the price action and the RSI indicator are displaying a notable bullish divergence, particularly after a period of intense selling pressure. The 4-hour RSI in the oversold region formed a bullish divergence coinciding with ADA’s bounce from the minor resistance zone at $0.46.

The convergence of these factors points to a potential upward move for ADA, with an expected rise to the nearest horizontal resistance at $0.53.

Navigating ADA’s Near-Term Trajectory

Altcoin ADA, while navigating the confusing terrain of resistance and potential corrections, the most reasonable scenario points to an adjustment towards the previous range’s resistance at $0.42. However, the presence of bullish signals on the 4-hour chart offers a nuanced perspective, suggesting a potential rise to $0.56 before continuing the broader downtrend.

Cryptocurrency markets’ dynamic nature advises ADA investors to monitor these fundamental levels and indicators for informed decision-making. The interaction between resistance levels, bullish signals, and overall market sentiment is likely to shape ADA’s near-term trajectory.

V. Sinclair

Victoria Sinclair, widely known as "V. Sinclair" in the crypto community, is an esteemed crypto writer based in the historic city of London, United Kingdom. Victoria's foray into the crypto space began with a desire to unravel the complexities of blockchain and decentralised finance

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