Cardano (ADA) price formed a lower high after rejection from the $0.36 area. A successful breakout above this could accelerate the rate of rise.
ADA token is the native coin of the Cardano blockchain platform. Since hitting an all-time high of $3.10 in August 2021, ADA price has fallen below a descending resistance line. Due to this decrease, it came down to a low of $0.23 in December 2022.
ADA price later started rising and broke above the resistance line in January 2023. Although it failed to move above the $0.39 resistance area, it validated the resistance line as a support (green icon).
However, the trend can be considered bullish only after ADA price breaks the $0.39 area. Apart from being the main horizontal resistance, rejection from it coincides with RSI rejection from 50 line (red icon). Consequently, a breakout above $0.39 together with an RSI rise above 50 is needed to accelerate the trend. In that case, the price could rise further towards the next resistance at $0.59.
On the other hand, if ADA price breaks below the resistance line, it could decline further to $0.22.
Cardano (ADA) price struggles with short-term resistance
Technical analysis from the daily time frame shares many similarities with the weekly.
On this time frame, the price was rejected by the $0.36 resistance area, forming a long upper wick and a lower high (red mark). This coincides with the RSI rejection from the 50 line.
Hence, the price action and indicator readings are quite neutral. In a similar fashion to the weekly time frame, whether price breaks or is rejected from this area could determine the future trend.
To conclude, whether ADA price breaks $0.39 or gets rejected could determine the future trend. A successful breakout could lead to $0.59 and confirm a reversal of the bullish trend. On the other hand, there could be a rejection towards $0.22.
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