Cardano (ADA), a leading cryptocurrency by market capitalization, has experienced a lengthy period of volatility, primarily trading below the key psychological level of $0.50. Many investors are questioning when the next significant price increase will occur. Recent technical analysis indicates that a major trend shift may be on the horizon.
Strong Bullish Indicators
TradingShot, a respected technical analyst, recently highlighted a strong buying signal on Cardano’s weekly price chart, aiming for potential price levels around $5. Current indicators reflect a robust bullish sentiment, suggesting that ADA could experience notable price increases in the coming months.
Key Technical Signals Reinforce Optimism
Key technical signals reinforce this optimistic outlook. Cardano has formed a bullish cross on its weekly logarithmic moving average convergence divergence (1W LMACD), a signal that has historically indicated the beginning of upward trends. Additionally, ADA has been consolidating below its 50-week moving average since May, a pattern that typically precedes significant breakouts.
Accumulation Phase Indicated by RSI
The Relative Strength Index (RSI) for ADA remains in a healthy range, indicating an ongoing accumulation phase. As buying momentum increases, the potential for price growth also rises. A breakthrough above the $0.40 resistance level has been significant, potentially paving the way for further gains towards $0.50 and the psychological $1 mark.
