ADA Soars 12% in a Week, What’s the Next Target?

After recording an all-time high at $3.10, Cardano entered into a correction that’s ongoing for 200 days so far. Meanwhile, bad news, such as delisting from the eToro exchange, has become a catalyst for further price retracement. Despite the rumors of burn mechanism rollout, there is no significant reaction.

Technical Analysis by Grizzly

The Daily Chart:

On the daily timeframe, ADA is trading in a descending channel (marked by yellow). During the downtrend, the price has not yet formed a higher high, and the red Ichimoku Cloud has been the main barrier. The first major challenge is to cross above the resistance at $1 (marked by blue), which pushes price into the cloud and can lead to a lot of volatility.

If Cardano breaks this area, the dynamic resistance at $1.2 could be the next challenge. The static support at $0.75 is also a place that the bulls have defended several times.

RSI-14d: Entered the bullish area and is testing the downtrend line.

The 4-Hour Chart:

On the 4-hour timeframe, the short-term uptrend, which was formed by creating higher highs and lows, was halted after hitting the EMA200. A MACD divergence also indicates a short-term correction. If it continues, the first support is at $0.85 and then $0.78. If the bulls fail to defend these levels, things will go bad from bad to worse.

Short-term resistances: $0.9 & $1

Short-term supports: $0.85 & $0.78