Date: Thu, Jan 02, 2024, 07:20 AM GMT
The cryptocurrency market is showing signs of recovery today, rebounding from its correction phase that began last month. Bitcoin (BTC), which recently dropped to a low of $92,000 on December 31, has now recovered to its current level above $95,000.
Amid this bounce, Cardano (ADA) has gained significant traction, surging over 8% to trade at $0.93.
Cardano (ADA) Price 02 Jan
Falling Wedge Breakout
ADA's recent price action was influenced by a rejection at the $1.32 resistance level, forming the upper boundary of a falling wedge pattern, as depicted in the chart. This rejection led to a pullback, with the price repeatedly testing the wedge's lower support level.
Cardano (ADA) 4H Chart/ Coinsprobe
However, $ADA has successfully broken out of the falling wedge's upper resistance at the $0.87 level. This breakout has propelled its price to the current $0.93, nearing a critical horizontal resistance level at $0.96.
If ADA sustains this momentum and breaches the $0.96 resistance, it could pave the way for further gains. The next key resistance levels lie at $1.12 and $1.32, representing potential upside gains of approximately 43% from the current price.
Technical Indicators
The MACD (Moving Average Convergence Divergence) indicates a bullish crossover, signaling the potential for upward momentum in ADA's price. Additionally, the RSI (Relative Strength Index) has climbed to 49.74, approaching the critical 50-mark, which reflects improving bullish sentiment and suggests growing buying pressure in the market.
Will The Next Move Trigger A Surge?
The breakout from the falling wedge pattern is a positive development for ADA, but a sustained push above $0.96 will be critical for confirming a broader upward trend. If ADA clears this resistance, the path to $1.12 and beyond becomes more likely, potentially driving significant gains for investors.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
