Cardano Price Prediction: ADA has been showing bullish signs since October 21 and will confirm its bottom with a retest of the $0.43 area.
The price of Cardano (ADA) has bottomed out since August 2021, when it reached an all-time high of $3.10. The weekly RSI (black line) had a downside break prior to the bearish divergence. Its minimum price fell to $0.33 in October 2022.
Later, a rally in Cardano price (green icon) validated a bullish divergence in the $0.36 horizontal area and the weekly RSI (green line). Besides, the weekly RSI broke below its bearish divergence trend line.
As a result, both the bounce off price action and the RSI movement suggest that higher future prices are in store for ADA. If an uptrend starts, the nearest resistance will lie at $0.58.
Cardano Price Prediction: Bottom Reached?
Technical analysis from the daily time frame is supported by the findings from the weekly one. After breaking out of a symmetrical triangle on October 4th, ADA price hit a low of $0.33 on October 21st. The price action is showing a complete five-wave downside movement since the breakdown.
Since then the movement has accelerated. ADA started an upward move and reached a maximum price of $0.44 before falling. Later, the price of Cardano increased once again in the last 24 hours, but the breakout attempt was also unsuccessful. The highs validated the $0.43 area as resistance (red sign).
Besides, the daily RSI is bullish. It broke a descending resistance line and is now trading above 50.
As a result, the daily time frame readings confirm those from the weekly chart and suggest a bullish price reversal.
Short-term retracement before breakout potential
The rise since the lows looks like a complete five-wave upward movement. If true, the latter reduction is part of the ABC structure. In this, the ADA wave is in C.
The most likely downside is the 0.5-0.618 Fibonacci retracement support level of the $0.37-$0.38 level.
Thereafter, an upside move and a breakout above the $0.43 area could continue.
Conversely, a fall below the October 21 low of $0.33 (red line) would invalidate the bullish predictions for Cardano price and would indicate that a new low will follow.
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