In just the last week, Cardano‘s price soared by 22%, breaking free from its prior symmetrical triangle formation. This impressive double-digit increase managed to propel ADA‘s value beyond the previously challenging $1 resistance barrier.
With growing demand for the altcoin, ADA could extend its rally in the short term. Here is why.
Cardano Demand Soars
Over that period from December 3rd to January 15th, the market’s expansion led to ADA’s price moving in a symmetrical pattern, confined by two converging trendlines.
A symmetrical triangle refers to a geometric figure that emerges when an asset’s price fluctuates within a specific range, marked by recurring lower highs and higher lows, resulting in a triangular pattern. This configuration usually signifies a phase of uncertainty among market participants and is frequently followed by a movement in the direction of the previous trend, suggesting a potential breakout.
Over the last seven days, demand has grown, causing ADA’s price to exceed the upper boundary of its current pattern on Thursday. This breach suggests a change in investor sentiment, implying that the push to buy is now stronger than the urge to sell.
The current increase in demand for the coin is supported by its Relative Strength Index (RSI), which, as of now, is trending upward at 62.09.
The RSI (Relative Strength Index) tool assesses if an investment’s market status is either oversold or overbought by examining its price fluctuations. This indicator operates on a scale from 0 to 100, where figures surpassing 70 suggest the asset is overbought and likely requires correction. On the flip side, numbers below 30 imply the asset may be oversold, potentially leading to an upturn or rebound.
As a crypto investor, I’m observing that ADA’s Relative Strength Index (RSI) stands at 62.09, signifying a moderately robust bullish trend. This suggests that the asset is moving upwards, but it’s not quite reaching the point of being overbought yet, offering potential for further growth.
Additionally, data from its Elder-Ray Index reinforces this optimistic perspective. Currently, it yields a favorable reading of 0.18, suggesting robust buying activity and corroborating the positive market sentiments.
ADA Price Prediction: The $1 Level Is Key
Right now, ADA is being traded at approximately $1.12, slightly above the resistance point of around $1.03, which has been formed by the upper boundary of its symmetrical triangle. Given the increasing interest in this altcoin, if it successfully tests this breakout level, the $1.03 price point could transform into a support base. This transformation could potentially propel ADA towards its 30-day high of $1.34.
In case the retest doesn’t succeed, the price of ADA might retreat to around $0.94 again, as it follows the symmetrical triangle pattern.
Read More
- ONT PREDICTION. ONT cryptocurrency
- AI PREDICTION. AI cryptocurrency
- MOVR PREDICTION. MOVR cryptocurrency
- FWOG PREDICTION. FWOG cryptocurrency
- RSR PREDICTION. RSR cryptocurrency
- Dune Actress Rebecca Ferguson Joins Studded Cast Of The Magic Faraway Tree Alongside Andrew Garfield And More
- EUR INR PREDICTION
- EUR ZAR PREDICTION
- USD VES PREDICTION
- RAY PREDICTION. RAY cryptocurrency
2025-01-17 11:51