Cardano’s (ADA) recent price action paints a nuanced picture as it struggles with long-term resistance, raising concerns about the sustainability of its bullish trend. Failing to breach the significant resistance level of $0.68 led to the formation of a notable bearish candle, prompting a reassessment of ADA’s trajectory.
ADA remained in the $0.25 to $0.43 range since October 2022, spanning 59 weeks. A breakout above this range was marked by a bullish candle, suggesting a potential shift in control to the bulls and the start of a new long-term uptrend. However, ADA encountered resistance at $0.68, casting doubt on the continuous bullish momentum.
The weekly Relative Strength Index (RSI) has fallen below the critical level of 70 and is trending downward, indicating a potential decrease in bullish strength. Consequently, ADA’s price may be subject to further adjustments, possibly heading towards the familiar resistance of $0.42.
While the weekly analysis casts a cautious light on ADA’s direction, the 4-hour chart reveals intriguing bullish divergence signals after a period of intense selling pressure. The 4-hour RSI’s oversold condition coincided with ADA’s bounce from the minor resistance zone of $0.46.
These factors suggest a potential upward movement for ADA, with the nearest horizontal resistance expected to rise to $0.53. In 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, hinting at a potential rise to $0.56 before continuing the broader downtrend. ADA investors are advised to monitor these key levels and indicators for informed decision-making in the dynamic world of cryptocurrency markets.